Quantum computing stocks have drawn considerable investor interest over the past year, driven by promises of exponential speed and productivity gains. This has pushed valuations to extreme highs, making direct investments in many pure-play companies risky.
Alphabet, with its $4 trillion market cap, offers an indirect approach. Known for Google Search, Android, Google Cloud, and Waymo, it does not emphasize quantum computing in quarterly reports. However, its resources and AI expertise enable pursuit of the technology.
The company has developed a quantum chip named Willow, which completes a standard benchmark calculation in five minutes—a task estimated to take a traditional computer 10 septillion years. Willow also reduces errors as qubit counts increase, a significant breakthrough given that error rates typically rise with more qubits.
In contrast, startups like IonQ and Rigetti Computing report substantial losses and struggle to maintain operations. Alphabet, however, can afford major investments, with capital expenditures pledged between $91 billion and $93 billion for 2025 and $74 billion in free cash flow over the trailing 12 months.
While much of this capital likely supports AI initiatives, quantum computing is assumed to receive a significant portion as Alphabet aims to build a large, error-corrected quantum computer controlling 1 million qubits.
Investors should not expect detailed financial disclosures on quantum computing soon, nor immediate contributions to Alphabet's earnings. Yet, its financial stability and technical advancements position it as a potential leader in the industry.
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