Google’s parent company, Alphabet (GOOGL US), was a standout winner overnight, surging more than +5% after the company unveiled “Willow,” its latest quantum computing chip. When quantum computing matures, it is expected to be useful for large-scale simulations and code-breaking, but that may not be possible for years or decades. Several technology business figures, including Tesla CEO Elon Musk and OpenAI CEO Sam Altman, praised Google’s announcement on social media.
Like similar quantum chips, Willow uses uncertain “qubits” to represent numbers instead of transistors, which are used on traditional semiconductors. Google said its technology can reduce expected errors faster than they appear as quantum chips get bigger, which has been a bottleneck in developing better quantum computers. This is not a game changer for short-term earnings but an illustration that the company is heading in the right direction.
- We remain bullish on GOOGL, initially targeting a test of the $US200 area. MM is long GOOGL in its International Companies Portfolio.
MM is long and bullish Alphabet
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