Alphabet Inc. shares surged the most since October after the company announced a significant advancement in quantum computing with its Willow quantum chip.
On Monday, Alphabet revealed that its quantum computer, powered by Willow, can solve a problem in just five minutes—something that would take supercomputers approximately 10 septillion years. Although Alphabet did not specify any practical applications for this immense computing power, the breakthrough generated widespread optimism among analysts. Many see Willow as a potential long-term game-changer.
Colin Sebastian, an analyst at Baird, noted that while quantum computing is still years away from broad commercial use, the development strengthens Google’s position as a technology leader. He highlighted that Willow represents a key step toward the eventual commercialization of quantum computing, which could have profound implications for various industries, including data and national security.
Bloomberg Intelligence also emphasized that quantum advancements could enhance AI training and inference at Alphabet, giving the company an edge over other tech giants.
Alphabet's breakthrough boosted the stock by as much as 6.3%, reaching its highest level since July. This surge is part of a broader recovery that has seen Alphabet's shares rise nearly 25% from a September low.
The announcement also sparked interest in other quantum-related stocks. Rigetti Computing Inc. surged as much as 29%, D-Wave Quantum Inc. rose 16%, and IonQ Inc. gained 5.4%.
The quantum computing sector has seen significant gains, with IonQ and D-Wave both up more than 400% since September. Rigetti has seen an even larger increase, climbing over 600%.
Options traders also reacted to the rally, with call options on Alphabet stock far outpacing puts, signaling strong optimism about further gains.
