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Quantum Computing Breakthrough Confirms Our Price Target for This Big Tech Name

And recaptured search engine market share and vibrant digital advertising are other positives.

Chris Versace·Dec 10, 2024, 1:38 PM EST

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Shares of Alphabet GOOGL are moving higher on Tuesday following the company unveiling a new-generation chip referred to as Willow, that helped overcome key challenges in quantum computing. 

Per the company, its quantum computer needs just five minutes to solve a problem that would take supercomputers around 10 septillion years. While there are no commercial applications expected in the near-to-medium terms for quantum computing, this development addresses recent technology concerns that have dogged Alphabet and shored up its competitive position.

Two other reasons for the move higher in GOOGL shares are the rebound in Google’s search engine market share in November and the positive 2025 digital advertising outlook that we shared with you on Monday. Data from Statcounter shows Google clawed back global search engine market share from Microsoft MSFT, Yandex and Yahoo in November with notable gains in mobile and desktop search.

We see these data points supporting our GOOGL price target of $210 and they are leading others, like Jefferies and Baird, to reiterate their price targets at $205.

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At the time of publication, TheStreet Pro Portfolio was long GOOGL.