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Alphabet (GOOGL - Free Report) has found itself in the headlines following the announcement of Willow, its new quantum computing chip that boasts state-of-the-art performance across key metrics and enables major achievements in the field.  

Willow Addresses Key Quantum Limitations 
 

Firstly, Willow has the capability to reduce errors exponentially as it scales qubits higher, defeating a key challenge in quantum error correction that’s been present for nearly 30 years. Secondly, in a benchmark, Willow completed a computation in under five minutes that today’s fastest supercomputers couldn’t solve in 10 septillion years.

For those curious, ’10 septillion years’ is longer than the age of the universe itself.

It’s undoubtedly a huge development for the space, causing Alphabet shares to enjoy bullish action. Hartmut Neven, Founder and Lead at Google Quantum AI, said:

‘My colleagues sometimes ask me why I left the burgeoning field of AI to focus on quantum computing. My answer is that both will prove to be the most transformational technologies of our time, but advanced AI will significantly benefit from access to quantum computing.’

Alphabet shares have been notably strong over the last three months, gaining more than 20% and outperforming the bulk of Mag 7 peers. Analysts have also taken a favorable stance on the company’s earnings outlook, raising EPS expectations across the board over recent months.

Image Source: Zacks Investment Research

The growth outlook for the mega-cap tech giant also remains favorable, with current consensus expectations suggesting 40% EPS growth in its current fiscal year on nearly 15% higher sales.

Image Source: Zacks Investment Research

Bottom Line
 

Mega-cap technology giant Alphabet has found itself in a positive light following favorable news surrounding Willow, its new state-of-the-art quantum computing chip.

The quantum computing theme appears to be picking up some real steam now, with Alphabet’s news release really lighting a spark. 

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