Can the Rally in Alphabet (GOOGL) Stock Continue with New Quantum Computing Chip?

Core Viewpoint - Alphabet's stock has surged to new 52-week highs following the announcement of its advanced quantum computing chip, Willow, which addresses a significant challenge in quantum error correction [1][4]. Group 1: Stock Performance - Alphabet's stock is approaching $200 per share, reflecting a trend similar to Amazon's recent performance [2]. - The stock has increased by 16% in December and has gained 40% year-to-date, outperforming broader indexes but trailing Amazon's 50% gain [3]. Group 2: Quantum Computing Breakthrough - Willow is designed to drastically reduce errors in quantum computing, completing a computation in under five minutes that would take a supercomputer 10 septillion years [4]. - This advancement is viewed as a significant step towards commercially viable quantum computers, with potential applications in medicine, energy, and AI [4]. Group 3: Valuation Metrics - Alphabet's stock trades at 23 times forward earnings, which is a slight discount compared to the S&P 500 and the lowest among its Magnificent 7 peers, with Meta at 27.3X and Amazon at 43.3X [5]. Group 4: Future Growth Expectations - Alphabet is anticipated to achieve double-digit growth in both revenue and earnings in the coming years, with Willow serving as a potential catalyst for expansion [7]. - Positive earnings estimate revisions for fiscal years 2024 and 2025 suggest a potential for higher stock ratings in the future [7].