Shares of Google's parent company Alphabet (GOOGL) are higher Tuesday after the tech giant introduced Willow, its latest quantum chip.
The Willow chip can reduce errors as it scales and performs a computation in under five minutes, said Google Quantum AI founder and lead Hartmut Neven in a blog post. He added that the same computation would take one of the world's fastest supercomputers 10 septillion years to complete.
"The Willow chip is a major step on a journey that began over 10 years ago," Neven said. "As part of Google Research, our team has charted a long-term roadmap, and Willow moves us significantly along that path towards commercially relevant applications."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Regarding the speed of the chip's computing ability, Neven said, "This mind-boggling number exceeds known timescales in physics and vastly exceeds the age of the universe."
Over the long term, Neven believes quantum computation will advance the ability of artificial intelligence, including discovering new medicines and designing more efficient batteries for electric vehicles.
Is Alphabet stock a buy, sell or hold?
Alphabet has outperformed the broader market in 2024, up 36% for the year to date on a total return basis (price change plus dividend) vs the S&P 500's 33% gain. This is just more of the same for GOOGL, which has been a market-beating machine for the past two decades. And even with Google's looming legal issues, Wall Street is bullish on the Magnificent 7 stock.
According to S&P Global Market Intelligence, the average analyst target price for GOOGL stock is $209.85, representing implied upside of more than 14% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Argus Research has a Buy rating on GOOGL stock with a $200 price target.
"While Alphabet has often been criticized as a Johnny-one-note for its dependence on digital advertising, the rapid growth of Google Cloud has begun to diversify the company's revenue," wrote Argus analyst Joseph Bonner in an October 31 note. "Even the much maligned Waymo autonomous vehicle business has begun to expand commercial services, well ahead of competitors. Alphabet remains at a minimum competitive, if not a leader, in the development of generative AI, perhaps the new computing paradigm."
Related Content
-
The Best Bank ETFs to BuyThe best bank ETFs can offer above-average yields and reduce the complexities of investing in financial stocks.
-
Child and Dependent Care Credit: How Much Is It?CDCTC The non-refundable tax break can help working families afford quality care for their child or qualifying dependent.
-
The Best Bank ETFs to Buy
The best bank ETFs can offer above-average yields and reduce the complexities of investing in financial stocks.
-
Social Security and Medicare Funding: Is the Sky Falling?Social Security and Medicare are slowly running out of money, but what does that mean for the retirees counting on them? Actually, it's not all bad news.
-
What We Need to Do to Protect Retirees' Financial SecurityCognitive decline and aging in general put older retirees at risk of losing their financial security when they're the most vulnerable. What can be done?
-
Stock Market Today: Stocks End Mixed After FOMC MinutesThe minutes from the December Fed meeting signaled central bankers' uncertainty over potential Trump administration policies.
-
Moderna Stock Is Volatile Amid Bird Flu DevelopmentsModerna stock has been volatile this week as the first death in the U.S. connected to bird flu was reported. Here's what you need to know.
-
Why Advanced Micro Devices Stock Was Double-DowngradedHSBC lowered its rating on Advanced Micro Devices stock amid several concerns including the chipmaker's ability to compete with Nvidia. Here's what to know.
-
Stock Market Today: Stocks Dragged Down by Strong DataInvestors weigh the prospect of no more rate cuts in the current cycle.
-
Gold Investments Continue to ShineHere are some of the best reasons why you should include at least a little gold in your portfolio.
