The Nasdaq Composite surpassed the close mark for the first time on Wednesday. Investors can appreciate Alphabet’s breakout on the back of a quantum leap. The tech-heavy index breached the 20,000 level, while the more concentrated Nasdaq 100 also touched all-time highs. One of the best performers within tech was parent Google, whose shares rose 5.5% to hit a new intraday high. Alphabet joined in on Wednesday after the megacap tech company released the first version of its artificial intelligence model. That’s the second straight day for the stock, with shares rising more than 5% on Tuesday after Alphabet unveiled a “groundbreaking” quantum computing chip called Willow. GOOGL ALL Mt. Alphabet, Alphabet shares of all time are tracking for their best week since March 2023 as investors cheer the quant news. During most of Wednesday’s session, the stock passed the $195 mark. “Shares are up more than 10% this week on increased excitement around the new Willow chip and quantum computing case,” said Brian Mulberry, client portfolio manager at Zacks Investment Management. “The real breakthrough that connects the momentum behind AI with the real way we interact with technology will become increasingly important to investors in the coming year, showing consumers how AI can be monetized.” Mulberry has called Alphabet “one of the most innovative companies of the modern technological era”. Wall Street sees even more upside for Alphabet’s Class A shares. The average analyst polled by LSEG has a buy rating and a price target that suggests the stock could rise more than 6%. One of those bullish analysts is Bank of America’s Justin Post, who also cited a “long history of innovation” and a “track record” of monetizing next-generation technology. The Post reiterated its buy rating after the announcement, while also indicating an “underweight” rating on the stock. “Progress with Willow, which shows Alphabet remains at the forefront of technology innovation, is important to stock sentiment,” the Post wrote to clients on Tuesday. “In the long term, quantum innovation has the potential to create a significant technology niche for Alphabet.” Alphabet’s Willow announcement inspired other quantum computing names such as Rigetti Computing. The Defiance Quantum & AI ETF (QTUM) also hit all-time highs on Wednesday.
