Google’s Quantum Computing Chip ‘Willow’ Fortifies Its Moat In AI

Summary:

• Google’s Willow quantum chip, with 105 qubits, enhances AI and quantum applications, boosting sentiment. Despite competitors IBM (156 qubits) and Microsoft (topological qubits), Google leads when combined with AI capabilities.
• Quantum gains remain distant, with commercial viability post-2035. Market optimism overestimates short-term impact; sentiment-driven volatility and R&D costs could pressure margins and valuation.
• My valuation, assuming a 12.5% revenue CAGR and 40% EBITDA margin by 2034, indicates a 240% upside (13% CAGR). With strong management and innovation, I maintain a Buy rating.

Since my last analysis of Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), the stock has gained 12% in price, and a large part of this has been due to increased sentiment related to Google’s announcement of

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