Title: Why Alphabet's Share Price Continues to Climb
Alphabet, Google's parent company, kicked off the week with its stock trading above Friday's close, continuing its upward trajectory. By 10:10 a.m. ET on Wednesday, Alphabet shares had climbed an impressive 4.5%. The surge is primarily attributed to the announcement of a new quantum computing chip: Willow.
Unveiling Google Willow
On Monday, Alphabet took to its blog to share some exciting news. They proudly presented Willow, their latest quantum computing chip. As a software powerhouse, known for its dominance in internet search and advertising, Alphabet also invests in emerging technologies they believe have the potential to significantly impact their $340 billion business. Quantum computing is one such bet.
Alphabet was thrilled to announce that Willow successfully surpassed a standard benchmark computation that would take today's fastest supercomputers a staggering 100,000,000,000,000,000,000,000,000 years to solve. It managed to accomplish this feat in a mere five minutes.
While Willow isn't quite ready for commercialization yet, Alphabet, having worked on the chip for a decade, claims that larger quantum chips lead to more accurate results and a decrease in error rates. The company plans to use Willow to tackle real-world problems, aiming to solidify its position as a leader in quantum computing technology.
Should You Invest in Alphabet Stock?
Alphabet's monumental breakthrough in quantum computing has made headlines, and its stock seems fairly priced, even if quantum computing doesn't significantly contribute to the company's bottom line. Priced at $2.3 trillion with $94 billion in annual income, Alphabet shares cost 24.1 times trailing earnings. Given its projected long-term growth rate of 16%, it translates into a reasonable 1.5 PEG ratio.
Long story short, Alphabet's achievement in quantum computing is a significant milestone for the company, making its stock a potentially attractive investment opportunity.
The announcement of Alphabet's quantum computing chip, Willow, has sparked interest in the finance world, as investors consider the potential impact on the company's profits through investing in Alphabet stock. Alphabet's significant investment in emerging technologies like quantum computing demonstrates their forward-thinking approach to finance and future growth opportunities.
