On December 9, Alphabet launched the Willow quantum chip revolutionizing the computing system. Google’s breakthrough chip will make quantum computing less prone to errors which helps in solving complex problems within a few minutes. Alphabet stock surged following the launch of the quantum processor chip on December 10.
The Alphabet stock prices went up by about 5% by 1:00 p.m. on Tuesday. Since April 2024, Google’s parent company stock has surged about 6%, adding around $136 billion to its market valuation and representing one of the best intra-day gains. The launch of the Willow Quantum chip also led to an exciting conversation between CEO Sundari Pichai and SpaceX’s founder Elon Musk.
Google’s Willow Quantum Chip Rocks the Tech World
Alphabet stocks gained record high following the launch of the quantum processing chip. The stock surge was followed by an upbeat analyst update. Thomas Champion, senior research analyst at Piper Sandler rated Alphabet as the “top pick” heading of 2025. Champion said, “Our recent surveys suggest Google is headed for a product-driven resurgence.” referring that 75% of surveyed ad buyers believe that Gemini would be disruptive in 2025.
Champion believes that Google Cloud and YouTube subscriptions will grow at a fast pace by next year, boosting his positive outlook for the stock. Piper Sandler has rated Alphabet as “overweight,” with a price target of $210, suggesting a 14% potential upside from current levels.
Willow Chip Launch Sends Quantum Computing Stocks Soaring
The stock market responded positively to the news, with Alphabet’s shares having the highest one-day gain since October. Trading value was significantly higher, as investors were hurrying to take their positions in the company. Options traders were significantly active, making a total of five times the value of put options.
The launch of Willow chips improved the growth of companies dealing with quantum computing along with Alphabet stocks. For instance, “Rigetti Computing saw its stock surge up to 29%, while D-Wave Quantum jumped 16% before settling at a 6.7% gain. IonQ shares rose 5.4%.”
What do Analysts think of Alphabet’s Performance?
Baird analyst Colin Sebastian, who has an “outperform” rating on Alphabet stock, believes the Willow breakthrough strengthens Google’s position as a tech leader, even though quantum computing is still years away. Bloomberg Intelligence analysts also noted that these advancements could improve Alphabet’s AI processes, giving the company a technological edge over its competitors.
The launch of Google’s Willow quantum chip has significantly impacted both Alphabet’s stock and the broader quantum computing industry. Analysts are optimistic about Alphabet’s future, with key figures highlighting the company’s growth potential in cloud services and YouTube. Despite quantum computing being years away from mainstream use, the Willow breakthrough strengthens Alphabet’s position as a tech leader. The stock’s surge reflects investor confidence in Alphabet’s innovative strides and potential for future growth.
