Alphabet, Google’s Parent Company, Celebrates Quantum Chip Breakthrough – One America News Network
December 10, 2024 – 8:31 AM PST
(Reuters) – On Tuesday, shares of Alphabet Inc. (GOOGL.O), Google’s parent company, surged nearly 5% following the announcement of a groundbreaking new chip, which the company claims addresses a significant hurdle in quantum computing.
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On Monday, Google unveiled its latest chip, Willow, which accomplished a computational feat in five minutes that would take a classical computer longer than the age of the universe to complete.
The race for quantum computing has intensified among tech firms, all aiming to create systems that operate at speeds exponentially surpassing those of traditional silicon-based computers.
The fundamental components of quantum computers, known as “qubits,” are both fast and prone to errors, presenting a substantial challenge in achieving reliable and commercially feasible quantum computing solutions.
Typically, as the number of qubits in quantum computing increases, so do the potential errors. However, Google announced on Monday that it has developed a method to connect qubits in the Willow chip that reduces error rates even as qubit numbers rise, and also allows for real-time error correction.
“Currently, there are no direct applications, but Willow holds the potential to significantly impact fields such as science, medicine, and finance. The chip dramatically reduces errors and could lead to groundbreaking advancements across various industries,” stated Thomas Hayes, chairman and managing member at Great Hill Capital.
Shares of Alphabet are positioned for their strongest performance since late April, with the stock appreciating 25% year-to-date as of Monday’s close.
The current price-to-earnings ratio for Alphabet’s shares over the next 12 months stands at 19.58, in contrast to Microsoft’s (MSFT.O) 32.03 and Amazon’s (AMZN.O) 36.79, based on data from LSEG.
Earlier this year, Microsoft and the quantum computing firm Quantinuum announced that they had made significant progress towards rendering quantum computers commercially viable by enhancing their reliability.
Reporting by Deborah Sophia in Bengaluru; Editing by Shounak Dasgupta
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