Alphabet Soars on Quantum Computing Breakthrough with Willow Chip

Google parent Alphabet saw its shares rise 5% on Tuesday following the unveiling of Willow, a next-generation quantum chip promising a major leap in computing.

The Willow chip solved a problem in five minutes that would take classical computers longer than the age of the universe, marking a milestone in quantum technology. The breakthrough addresses a critical challenge in quantum computing: reducing errors as qubits—the building blocks of quantum computers—scale up. Google claims Willow can correct errors in real time, exponentially enhancing reliability.

While commercial applications remain distant, experts believe Willow could revolutionize industries like science, medicine, and finance. “This could lead to groundbreaking discoveries across sectors,” said Thomas Hayes of Great Hill Capital.

Alphabet shares, already up 25% this year, surged further, marking their best day since April. The company’s forward price-to-earnings ratio remains competitive compared to rivals Microsoft and Amazon.

This comes amid a wave of advancements in quantum computing, with firms like Microsoft and Quantinuum also making strides toward commercializing the technology. Alphabet’s breakthrough sets a new benchmark in the race to harness quantum computing’s transformative potential.