Shares of Alphabet, the parent company of Google (GOOGL, GOOG), surged to a five-month high on Tuesday, driven by growing optimism surrounding the tech giant’s latest advancement in quantum computing. Investors are closely monitoring the stock’s future trajectory following the unveiling of the company’s “breakthrough” quantum computing chip, Willow.
Alphabet CEO Sundar Pichai highlighted the significance of Willow on social media platform X, explaining that the chip could perform calculations in minutes that would otherwise take supercomputers an unimaginable 10 septillion years. The development is part of the company’s broader roadmap toward building a fully functional quantum computer, with potential applications in fields like drug discovery, fusion energy, and battery design.
Despite experiencing a dip in stock performance during the third quarter due to concerns over antitrust issues, Alphabet’s stock has made a strong recovery. Since its low in early September, shares have rebounded by 27%, and the stock is now up more than 30% for the year as of Tuesday’s close.
From a technical perspective, Alphabet’s stock has shown promising signs of upward momentum. After peaking in early July, the shares traded within a symmetrical triangle pattern before breaking out above the upper trendline on Tuesday, signaling the continuation of the current uptrend.
Additionally, the Relative Strength Index (RSI) supports the bullish outlook, registering above 60—indicating positive price momentum—while remaining below the overbought threshold. This suggests that there is still room for further gains before the stock potentially becomes overextended.
As Alphabet’s stock continues to rise, investors will be watching key price levels closely. The breakout above the symmetrical triangle could signal a longer-term continuation of the bullish trend, but technical analysis will be crucial in identifying potential support levels during any market retracements.
With optimism surrounding the Willow chip and broader advancements in quantum computing, Alphabet’s stock is poised to remain a focal point for investors as the company progresses with its ambitious technology roadmap.
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