Market analysts predict Alphabet (GOOGL, Financial), the parent company of Google, will finish 2024 on a high note, thanks to its advancements in quantum computing. Despite the technology's current lack of commercial application, news of Alphabet's successful development of the quantum computing chip "Willow" has driven its stock price up by over 30% from its September low. This development has helped Alphabet outperform its peers, even amid concerns about competition from AI rivals like OpenAI and antitrust risks.
Investors see quantum computing as a potential game-changer, with Alphabet's breakthrough spurring interest in similar tech companies like Quantum Computing, Rigetti Computing, D-Wave Quantum, and IonQ. While commercial applications may be years away, the technology promises significant advancements in fields such as drug discovery and encryption.
Despite antitrust pressures, some investors view Alphabet's current valuation as a buying opportunity, citing its strong fundamentals and growth prospects beyond regulatory challenges.
