Alphabet stock adds $136 billion in market value after it unveils...
Alphabet stock surged on Tuesday after the tech giant revealed a breakthrough in quantum computing. The company introduced its new Willow chip, capable of performing complex quantum computations in a significantly shorter time frame than current supercomputers. This advancement has sparked excitement and optimism in the market.
The Willow chip, unveiled by Alphabet, can complete a benchmark computation test in less than five minutes. This is a stark comparison to the 10 septillion years it would take for existing supercomputers to achieve the same task, surpassing the universe's known age. As a result of this groundbreaking innovation, Alphabet stock saw a remarkable increase, jumping by as much as 6% and adding approximately $136 billion to its market value. This surge marks the company's most significant intra-day gain since April 26.
Market Response and Analyst Sentiment
Even Elon Musk, the CEO of Tesla and co-founder of SpaceX, expressed his enthusiasm for the news. Musk engaged with Alphabet CEO Sundar Pichai on social media, discussing possibilities such as launching a "quantum cluster" in space through SpaceX's Starship. The positive momentum continued as Piper Sandler, a renowned financial services firm, provided an upbeat update on Alphabet.
Piper Sandler's senior research analyst, Thomas Champion, rated Alphabet as a "top pick" for investment heading into 2025. Champion highlighted the potential for a product-driven resurgence at Alphabet, citing encouraging survey results. According to their surveys, 75% of ad buyers anticipate that AI tools like Gemini will have a disruptive impact in 2025. Champion also expressed confidence in the continued growth of Google's Cloud and YouTube subscriptions in the coming year, reinforcing his bullish outlook on Alphabet stock.
Piper Sandler currently rates Alphabet as "Overweight" with a $210 price target, indicating a potential upside of 14% from the current market levels. The positive analyst sentiment further solidifies the market's confidence in Alphabet's future performance.
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