Google (GOOG) - parent company of Alphabet (GOOGL) - rose 5% higher on Tuesday after revealing the company’s latest semiconductor chip technology.
On Monday, Google announced details of the newest quantum computing chip “Willow”. The newest iteration of Google’s AI chips marks a significant advancement in quantum computing with huge implications for artificial intelligence (AI) and Google’s strategic direction.
According to Google, The Willow chip can solve complex computations in under five minutes - a task that would take classic supercomputers an estimated 10 septillion years.
Editor’s note, that’s 10 with 24 zeros.
This advancement in processing capability positions Google at the forefront of AI development.
Quantum computing's ability to handle vast datasets and perform intricate calculations at unprecedented speeds is poised to revolutionize all AI applications. Integrating the Willow chip into Google’s infrastructure will enhance its AI services and position as an AI leader.
Competitors like IBM and Microsoft are also making strides in this arena.
Google’s 5% surge puts the stock above its November highs and within 4% of striking new all-time highs.
The stock, like many other large cap technology stocks, has seen some weakness over the last month as investors begin to position for a broadening of the stock market’s rally in 2005.
A new Presidential administration and lower interest rates have investors looking for opportunities in sectors of the market that have spent the last three years lagging large cap tech stocks. Small cap, real estate and financial stocks have been among those that investors have been rebalancing towards.
That said, Google and Alphabet shares remain in short-, and long-term bull market trends.
Google’s 50-day moving average – a measure of a stock’s momentum – has been in a bullish trend since late-October. That bullish trend suggests that the stock should continue higher over the next 4-6 weeks.
Google shares are also trading in a long-term bull market trend with a price target of $250.
