So, Alphabet Inc. (GOOGL) (GOOG) is getting serious about building a quantum computer. Not just serious—it's decided to build two different kinds at the same time. On Tuesday, Google announced it's adding a whole new hardware track to its Quantum AI program, betting on neutral atom technology alongside its existing work with superconducting qubits. Think of it as hedging your bets in a race where no one's quite sure what the finish line looks like, but the prize is potentially world-changing.
The idea is pretty straightforward, even if the physics isn't. Superconducting qubits—the kind Google and IBM (IBM) have famously worked on—are great for fast operations. Neutral atoms, where individual atoms are suspended and manipulated with lasers, are theoretically better for scaling up to the massive, interconnected systems you'd need for a useful quantum computer. Google's plan is to run both races in parallel, using each approach to tackle different technical headaches and, hopefully, apply them to specific real-world problems sooner. It's a classic "don't put all your qubits in one basket" move.
This isn't just a hardware tweak; it's part of a broader push. Google is building out a full research program focused on the holy grail of error correction, better simulations, and the hardware itself. It's also expanding its leadership team and partnerships, essentially trying to build a whole quantum ecosystem from the ground up in Boulder and beyond.
What the Analysts Are Saying About the Quantum Race
This comes as Wall Street is starting to place its own bets on when quantum computing will stop being a lab curiosity and start being a business. Back in January, analysts at UBS, led by Madeleine Jenkins, put out a note calling it an early but "high-potential" market. They see applications popping up everywhere from supercharging AI and breaking cryptography to simulating new drugs and materials. Their timeline? Don't hold your breath for this decade. They expect "quantum advantage"—the point where a quantum computer can solve a practical problem better than any classical computer—to emerge in the 2030s.
In their view, Google is a leader in the pack, alongside other tech giants with deep pockets like Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). The interesting part is their warning about the rest of the field. They point out that while the big diversified players can afford to play the long game, the pure-play quantum companies—think IonQ, Inc (IONQ), D-Wave Quantum Inc (QBTS), and Rigetti Computing, Inc (RGTI)—are a different story. These stocks have seen gains, but UBS flags them as inherently more volatile. When your entire business is a technology that might not pay off for a decade, your stock price is going to be a rollercoaster.
Taking Stock of Alphabet's Position
So, how is the market reacting to Google's two-track quantum moonshot? On Wednesday morning, Alphabet shares were up about 1.3% in premarket trading. That's a nice little bump, but it's happening within a somewhat messy technical picture.
Let's break it down. The stock is trading below its key short- and medium-term moving averages, which typically suggests the near-term trend has some pressure on it. However, zoom out, and the stock is still up over 70% in the past year, sitting much closer to its 52-week high than its low. The momentum indicators are telling a mixed story. The RSI is sitting around 33, which is neutral but flirting with oversold territory—hinting that the recent selling might be running out of steam. Meanwhile, the MACD is still in bearish territory. The takeaway? The bounce needs more confirmation; it's not a clear all-clear signal yet.
For the chart watchers, key resistance sits up at $319.50, while support waits down at $270.50.
Where do the analysts stand? The consensus is firmly in the "Buy" camp, with an average price target of $376.94. Recent moves have been bullish: Needham maintained a Buy with a $400 target, Wells Fargo upgraded the stock to Overweight and raised its target to $387, and Tigress Financial calls it a Strong Buy with a $415 target.
