In recent months, investors have taken a renewed interest in quantum computing. Traditional computer bits can only hold zeros or ones. However, quantum bits (often called qubits) can represent any value between zero and one. This advancement makes calculations exponentially faster compared to traditional computers.
The problem is stability, because the more qubits a computer can process, the more error-prone it becomes. As a result, most industry analysts believe quantum computing is still years away from commercial viability.
Luckily, Google Parents letter (NASDAQ: Google) (NASDAQ: Google) A quantum chip has been developed that could be a game-changer for the industry. With this development, Alphabet could become the most successful quantum computing stock of 2025.
In fact, consumers and investors are best aware of Alphabet’s products, including Google search, YouTube, the Android operating system and Google Cloud. Still, the company founded Google Quantum AI in 2012 and has been working on the technology and building computers ever since.
Much of Alphabet’s focus in the field of quantum computing revolves around its quantum chip, Willow. Willow stands out because of its reduce An error occurred while adding qubits. This is in stark contrast to past quantum chips, where error rates increased with the number of qubits.
Additionally, Willow completed standard benchmark calculations in approximately five minutes. This is noteworthy because it estimates that the fastest supercomputers in use today would take 10.7 billion (10^25) years to perform the same calculation, which is longer than the entire history of the universe.
To be sure, quantum computing is a technology seeking real-world applications. Still, the ability to solve wrong problems bodes well for Alphabet’s efforts to make quantum computing useful and profitable.
Additionally, commercial viability may still be several years away, and the company’s other attributes may dominate in 2025 as quantum computing-related efforts remain focused on R&D.
In fact, the company’s research may be funded by its large and lucrative digital advertising business. In addition, the fast-growing Google Cloud business contributes an increasing share of revenue, making Alphabet increasingly important in the IT world with its presence in the cloud and long-term innovation in artificial intelligence (AI).
Due to the success of these businesses, Alphabet held $93 billion in liquidity as of the end of the third quarter of 2024. These assets put Alphabet in a strong position to fund quantum computing and any supporting technology.
