Alphabet Achieves Quantum Breakthrough with 13,000x Algorithm Speed Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 18 2026
0mins
Should l Buy GOOG?
Source: NASDAQ.COM
- Quantum Computing Advantage: Alphabet announced that its quantum computing algorithm runs 13,000 times faster than traditional supercomputers, marking its first verifiable advantage in quantum computing and showcasing potential applications in areas like MRI technology.
- Resource Investment: As the parent company, Alphabet invests heavily in in-house quantum computing solutions, and despite facing challenges in accuracy, its substantial financial backing allows continued research, ensuring competitiveness in the generative AI space.
- Microsoft's Innovation: Microsoft claims to have created a new state of matter through its quantum computing efforts, leveraging its nearly unlimited resources to push scientific advancements, and even if its quantum projects fail, its AI platforms remain a strong investment option.
- Nvidia's Strategy: Nvidia focuses on developing traditional computing units and launched the NVQLink interface to support hybrid use of quantum and traditional computing; if this hybrid approach succeeds, it could secure a favorable market position, though it risks missing out if QPUs replace more workloads than anticipated.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 311.430
Low
255.00
Averages
336.08
High
400.00
Current: 311.430
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Poor Investment Timing: Although Broadcom is recognized as a great company, Jim Cramer emphasizes that now is not the right time to invest, advising investors to wait for a price correction to enter at a more favorable moment.
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- Insufficient Market Attention: Despite Broadcom's impressive $1.5 trillion market cap as a semiconductor and software manufacturer, its lack of attention in the market suggests an underestimation of its potential, which could negatively impact its stock performance.
- Changing Customer Demand: While Broadcom supplies chips to major client Alphabet, the company urgently needs to acquire new clients to counteract the software market decline driven by AI fears; failure to adapt could expose it to greater market risks.
- Poor Investment Timing: Although Broadcom is recognized as a great company, Jim Cramer emphasizes that now is not the right time to invest, advising investors to wait for a price correction to enter at a more favorable moment.
- Future Growth Potential: Cramer believes Broadcom possesses winning characteristics in the current environment, and despite facing short-term challenges, its strong financial performance and potential stock buyback plans could lay the groundwork for a future stock price rebound.
See More
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- Alphabet's Accelerating Performance: In its fourth quarter, Alphabet reported an 18% year-over-year revenue increase to $113.8 billion, accelerating from 16% growth in the previous quarter, showcasing strong performance in Google Services and cloud computing, thereby reinforcing its market leadership.
- Cloud Business Surge: Google Cloud's revenue soared 48% year-over-year to $17.7 billion in the fourth quarter, driven by the ongoing adoption of AI infrastructure, indicating Alphabet's rapid expansion in high-margin sectors.
- Trade Desk's Slowing Growth: The Trade Desk reported fourth-quarter revenue of $847 million, up 14% year-over-year, but noted that growth would have been closer to 19% without the irregular nature of U.S. political ad spending, highlighting a deceleration in its growth momentum.
- Uncertain Outlook: The Trade Desk's first-quarter revenue guidance of at least $678 million implies only about 10% year-over-year growth, and the adjusted EBITDA guidance suggests a decline in key profitability metrics, reflecting the challenges it faces.
See More
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- Cloud Business Thriving: Google Cloud saw a staggering 48% year-over-year revenue growth in Q4, reaching $17.7 billion, driven by widespread adoption of AI infrastructure, significantly boosting overall revenue and profit.
- Challenges for The Trade Desk: The Trade Desk reported Q4 revenue of $847 million, up 14% year-over-year, but actual growth was lower than expected due to irregular U.S. political ad spending, indicating a deceleration in momentum.
- Gloomy Future Outlook: The Trade Desk anticipates first-quarter revenue of at least $678 million, implying only 10% year-over-year growth, while adjusted EBITDA guidance suggests a decline in profitability, despite maintaining a debt-free balance sheet.
See More
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- Minor Stock Decline: Broadcom's shares fell 0.2% on Monday, reflecting investor caution despite the company's leading position in the AI revolution, indicating a lack of confidence in its immediate market performance.
- Analyst Price Target Cut: RBC Capital's analyst Srini Pajjuri lowered Broadcom's price target from $370 to $340 while maintaining a 'hold' rating, signaling concerns about the company's short-term outlook despite its strong fundamentals.
- Optimistic Earnings Outlook: Despite the price target reduction, the analyst anticipates that Broadcom will report a 'beat and raise' quarter for Q1 FY2026, driven by increased demand for tensor processing units (TPUs) supplied to Google, which could bolster growth.
- Risks with Anthropic Relationship: The analyst expressed concerns regarding Broadcom's relationship with AI developer Anthropic, noting that while current supply agreements will generate revenue, demand may decline after the first half of 2027, posing risks to the company's future revenue stability.
See More
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- Significant User Growth: By the end of 2025, Reddit's daily active unique visits reached 121.4 million, a 19.3% increase from 101.7 million in 2024, with 50.7 million logged-in users, indicating a higher monetization potential and solidifying its position in the social media market.
- Substantial Revenue Increase: In 2025, Reddit's annual revenue surged by 69% to $2.2 billion, while adjusted EBITDA nearly tripled to $845 million, marking its first GAAP profitability, which reflects the success of its business model and strong market demand.
- International Expansion and AI Tools: Reddit attracted a broader range of advertisers through international expansion and newly launched AI-driven ad tools, while leveraging platforms like Google Gemini and OpenAI's ChatGPT to enhance its user base and advertising revenue.
- Future Growth Expectations: Analysts project that from 2025 to 2028, Reddit's revenue and adjusted EBITDA will grow at CAGRs of 33% and 42%, respectively, and if its valuation aligns with a 25x multiple of future EBITDA, its stock could rise over 140% in the next two years.
See More
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- Market Share Protection: Nvidia controls an estimated 92% of the data center GPU market but faces threats from competitors offering more cost-effective alternatives, prompting the launch of a new chip specifically designed for AI inference to solidify its market position amid intensifying competition.
- Technological Innovation: At the upcoming GPU Technology Conference, Nvidia is set to unveil a next-generation AI chip developed by AI startup Groq, aimed at addressing the unique needs of inference processing, thereby enhancing processing efficiency and potentially reshaping the AI competitive landscape.
- Customer Collaboration: OpenAI will be one of the first users to deploy the new chip, committing to 3GW of capacity from Nvidia, which not only lays the groundwork for Nvidia's initial foray into inference-centric chips but also showcases its competitiveness in energy efficiency.
- Optimistic Market Outlook: As the demand for inference grows, Nvidia is changing the market narrative with the release of its dedicated chip, expected to attract more developers to its products, further driving the company's stock price upward, with a current price-to-earnings ratio of 22 times indicating investment value.
See More
