Quantum Computing Breakthrough - Alphabet unveiled a breakthrough with its new quantum chip, Willow, leading to a surge in quantum computing stocks [1] - Willow achieved state-of-the-art performance, reducing errors exponentially as more qubits were used, a challenge in quantum error correction for nearly 30 years [3] - Willow completed a benchmark computation in less than five minutes that would take a top supercomputer 10 septillion (10^25) years, showcasing the potential of quantum computing [4] - Alphabet's announcement set off a boom in quantum computing stocks, with Rigetti Computing, Quantum Computing, and D-Wave Quantum all more than doubling last month [5] Stock Performance - Alphabet shares finished the month up 12%, with significant gains following the quantum computing announcement on Dec 9 [2] - Alphabet shares jumped 5 6% on Dec 10 and another 5 5% on Dec 11 after the Willow announcement [3] AI and Quantum Computing Impact - Alphabet's quantum computing breakthrough reassures investors that the company remains on the cutting edge of technology, which could be as important as delivering business gains [8] - The company has overcome setbacks in generative AI by replacing Bard with Gemini and adding an AI assistant to Google searches, maintaining steady growth in revenue and profits [7] Industry Perception - Alphabet was perceived as a loser in the tech arms race after Bard's initial mistakes, but the company has since regained its position with advancements in AI and quantum computing [6] - Alphabet is cheaper than most of its "Magnificent Seven" peers, making it a better value in the tech sector [7]
Why Alphabet Stock Gained 12% in January