This Stock Will Be the Biggest Quantum Computing Winner of 2025

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In recent months, investors have shown renewed interest in quantum computing. Traditional computer bits can only store zeros or ones. However, quantum bits, commonly called qubits, can represent any value between zero and one. This advancement allows for exponentially more fast computing speed compared to traditional computers.

The problem is stability, because the more qubits a computer can process, the more error-prone it is.For this reason, most industry analysts believe that quantum computing is years away from commercial viability.

Fortunately, parent Google The alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) developed a quantum chip that is a potential game changer for the industry.Alphabet could be the most successful with that development quantum computing resource In 2025 Here’s why.

Indeed, consumers and investors know Alphabet best for products like Google Search, YouTube, the Android operating system, and Google Cloud.However, the company founded Google Quantum AI in 2012 and has been exploring it ever since is technology and build computers.

Much of Alphabet’s focus in the quantum computing space revolves around Willow, its quantum chip reduces errors as it adds qubits.This is in contrast to past quantum chips, whose error rate increased as the number of qubits increased.

In addition, Willow performed a standard benchmark calculation in about five minutes, which is remarkable because it is estimated that the fastest supercomputers in use today would take 10 septillion (10^25) years to perform the same calculation, much longer. , than the entire history of the universe.

Admittedly, quantum computing is a technology in search of real-world applications, but the ability to solve problems with errors bodes well for Alphabet’s efforts to make quantum computing both profitable and profitable.

Moreover, since commercial viability is likely years away, the company’s other attributes may take a front seat in 2025 as quantum computing efforts remain focused on research and development.

Indeed, the massive and highly profitable digital ad business is likely to help fund the company’s research.Also, the fast-growing Google Cloud venture is driving revenue and has made Alphabet more important in the IT world with its cloud presence and longstanding innovations. artificial intelligence (AI).

Thanks to the success of those businesses, Alphabet had $93 billion in liquidity as of the end of the third quarter of 2024. Moreover, it generated nearly $62 billion in free cash flow in the first nine months of 2024. Those assets put Alphabet in a strong position for quantum computing and for any assistive technology funding.

This puts it in stark contrast to quantum computing startups like IonQ:. While IonQ’s ties to academia have helped it develop faster quantum computers, its significant losses could mean it runs out of time without commercial application of the technology.

In addition, Alphabet’s stock has risen nearly 40% over the past year, surpassing that figure S&P 500:. Despite those gains, its P/E ratio is 26 as of this writing, making it the cheapest stock by that measure among the Magnificent Seven.

With Willow and the resources and talent that made it possible, Alphabet could easily become the quantum winner of 2025.

The release of Willow and its success in solving the error-prone nature of quantum computing chips likely makes parent Google the leading company in the field in 2025.

What’s more, even if commercial viability is years away, its lucrative digital advertising and cloud business will likely fuel its massive free cash flow, which will help fund more research into quantum computing and technologies that will help make it commercially useful.

Finally, the fact that Alphabet offers the lowest P/E ratio among Magnificent Seven stocks gives investors an extra incentive to buy the stock.

Given this low valuation and its clear technical lead, quantum computing investors seem to have the best chance of success with Alphabet in 2025.

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Susan Frey, CEO of Alphabet, is a member of The Motley Fool’s board of directors. Will Healy has no position in any of the listed stocks.The Motley Fool has positions and recommends Alphabet has a disclosure policy.

Prediction: this stock will be the biggest quantum computing winner of 2025 originally published by The Motley Fool

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