While traditional computers we use today process data in binary, using bits that exist exclusively as either ones or zeros to perform calculations, quantum computers use qubits, which can exist as both one and zero simultaneously. This enables quantum computers to process sizable amounts of data and explore countless potential outcomes at once. However, there is a fundamental challenge in quantum computing space as an increasing number of errors arise as the system grows in complexity with a higher number of qubits. However, Google has achieved a breakthrough that it says can “exponentially” reduce errors as the number of qubits is scaled up. This is a challenge that researchers have been struggling to solve for close to three decades. Google says that its chip performed a computation in under five minutes that would take today’s fastest supercomputers 10 septillion years – that is 1 followed by 25 zeros. Separately, if you want upside with a smoother ride than an individual stock, consider the
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That said, there appear to be some practical challenges to overcome. Experts believe that the chip’s 105 qubits may still be too few to solve the complex problems quantum computing promises to tackle. Additionally, the chip’s superconducting qubits require extreme cooling, which could potentially present logistical and energy-related challenges. There is also skepticism about the benchmarks and tasks Google may have used to arrive at its comparison with current supercomputers. That being said, solving the error bottleneck is a major step forward and this could mean that the company should be able to eventually build larger quantum computers that can accelerate innovation in various fields ranging from drug discovery to battery design.
The decrease in GOOG stock over the last 4-year period has been far from consistent, with annual returns being considerably more volatile than the S&P 500. Returns for the stock were 65% in 2021, -39% in 2022, and 59% in 2023. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, is considerably less volatile. And it has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
Given the current uncertain macroeconomic environment around rate cuts and multiple wars, could GOOG face a similar situation as it did in 2022 and underperform the S&P over the next 12 months – or will it see a recovery?
What This Means For Google Stock
