-
Google's Quantum Echoes algorithm, running on the Willow chip, achieved a 13,000-fold advantage over the world's fastest supercomputer, completing a 3.2-year calculation in just over two hours.
-
The breakthrough's significance lies in its ability to verify results through real-world quantum experiments, paving the way for practical commercial applications within five years (e.g., drug discovery, materials science).
-
The announcement had a muted immediate stock impact (brief 1.5% gain), but Alphabet remains a strong long-term quantum play with a P/E of 26, posing a threat to smaller competitors like Rigetti Computing.
-
Google's Quantum Echoes algorithm, running on the Willow chip, achieved a 13,000-fold advantage over the world's fastest supercomputer, completing a 3.2-year calculation in just over two hours.
-
The breakthrough's significance lies in its ability to verify results through real-world quantum experiments, paving the way for practical commercial applications within five years (e.g., drug discovery, materials science).
-
The announcement had a muted immediate stock impact (brief 1.5% gain), but Alphabet remains a strong long-term quantum play with a P/E of 26, posing a threat to smaller competitors like Rigetti Computing.
Google today announced a groundbreaking algorithm, Quantum Echoes, with results published in the journal Nature. The algorithm, run on the Willow quantum chip, demonstrated a 13,000-fold advantage over the world's fastest supercomputer. Calculations that the Frontier supercomputer would have taken $3.2$ years to complete were performed by Willow in just over two hours.
What Distinguishes This Breakthrough?
Unlike previous demonstrations of "quantum advantage," Quantum Echoes offers the ability to verify results through direct comparison with real-world quantum experiments. This is a critical step towards practical applications of quantum technology.
Potential Applications
According to Hartmut Neven, Head of Google Quantum AI, the technology could find commercial use within the next five years in areas such as:
-
Drug discovery and molecular structure modeling
-
Materials science (e.g., better batteries for electric vehicles)
-
NMR spectroscopy in chemistry and biology
Implications for the Company's Stock
The earlier announcement of the Willow chip (December 2024) boosted Alphabet's shares by 5-7%, adding over $100 billion to its market capitalization. Currently, GOOGL is trading at approximately $250-$255 – a 52% increase year-on-year and 33% since the beginning of 2025.
For long-term investors, Alphabet remains one of the most attractive options for exposure to the quantum sector, combining breakthrough technological achievements with a solid financial position and a relatively appealing valuation (P/E: 26).
The company's stock momentarily gained about 1.5% after the announcement but later resumed its decline. It is worth noting the performance of another quantum computing company, Rigetti Computing. The stock rose sharply in September but began losing value from mid-October. Alphabet, with its product, is a potentially major threat to Rigetti, considering the giant's investment potential. Source: xStation5
IBM Earnings Preview: Will grandfather of IT industry deliver expectations?
US OPEN: Is the 'Meme Stock' Season Kicking Off?
Waymo: Race against the regulators
TSMC Earnings Preview: Will the Key Semiconductor Supplier Surprise the Market?
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
