On Wednesday, the Nasdaq Composite surpassed the closely watched mark for the first time. Investors can thank Alphabet for its breakthrough on the back of its quantum announcement. The tech-heavy index topped the 20,000 mark, while the more concentrated Nasdaq 100 also hit a record high. One of the best performers in the tech sector was Google parent company, which saw its shares soar 5.5% and hit a new intraday high. Alphabet rose on Wednesday after the big tech company released the first version of its artificial intelligence model. It marked the second day in a row of eye-popping gains for the stock, which rose more than 5% on Tuesday after Alphabet launched a “breakthrough” quantum computing chip called Willow. GOOGL ALL mountain Alphabet, Alphabet’s stock price is currently enjoying its best week since March 2023 as investors cheer the quantum news. The stock hit an intraday high on Wednesday, crossing the $195 mark. “The stock is up more than 10% this week on the back of more excitement about the new Willow chip and its quantum computing case,” said Brian Mulberry, client portfolio manager at Zacks Investment Management. “A true breakthrough that brings the power behind artificial intelligence to the next level.” As an idea tied to a real approach to technology – something that will become increasingly important to investors over the next year, Mulberry said Alphabet is demonstrating a way to monetize consumers through artificial intelligence. “One of the most innovative companies in the modern technological era.” Wall Street believes Alphabet’s Class A shares have more room to rise. Analysts surveyed by London Stock Exchange Group (LSEG) gave the stock an average buy rating and price target, suggesting the stock could rise more than 6%. One of the bullish analysts is Bank of America’s Justin Post, who also cited a “long history of innovation” and a “track record” of successfully monetizing next-generation technologies. Post reiterated his buy rating following the announcement, while also noting that the stock’s valuation showed “undervaluation.” “Willow’s progress demonstrates that Alphabet remains at the forefront of technological innovation, which is important to stock sentiment,” Post wrote in a letter to clients on Tuesday. “Quantum innovation has the potential to create a significant pipeline for Alphabet over the long term.” Technology Moat.” Alphabet’s Willow announcement boosted other quantum computing companies like Rigetti Computing. The Defiance Quantum & AI ETF (QTUM) also hit an all-time high on Wednesday.
