Shares of Alphabet, Google’s parent company, rose about 5% on Tuesday after unveiling a next-generation chip that the company said helped solve a major challenge in technology. quantum computing.
Google on Monday introduced a new chip called Willow, which was able to solve a computer problem in five minutes that would take a conventional computer longer than the history of the universe.
Technology companies are interested in quantum computing in hopes of developing systems that operate at speeds far higher than traditional silicon-based computers.
The building blocks of quantum computers, called “qubits,” while fast, are error-prone, making it difficult to ensure the reliability and commercial viability of quantum computers.
The greater the number of qubits used in quantum computing, the greater the number of errors. However, Google said Monday that it has found a way to chain qubits in the Willow chip in such a way that error rates decrease as the number of qubits increases, adding that it can also correct errors in time. real.
“While there is no current use, Willow will have major implications in science, medicine, and finance. Willow reduces errors exponentially and could lead to breakthroughs and major discoveries across all sectors,” said Thomas Hayes, President and Managing Member of Great Hill Capital.
Alphabet shares were on pace to have their best day since the end of April. The stock is up 25% year to date as of Monday’s close.
The company’s shares are trading at a forward 12-month price-to-earnings ratio of 19.58, compared to 32.03 for Microsoft and 36.79 for Amazon, according to data compiled by LSEG.
Earlier this year, Microsoft and quantum computing company Quantinuum said they had taken a key step toward making quantum computers a commercial reality by making them more reliable.
