1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Cramer highlighted that Alphabet Inc. (NASDAQ:GOOGL) has a facility for quantum computing and went on to say that it is not a reason to invest in the stock.
“Alphabet has a facility dedicated to quantum computing. This is super fast computing using superconductors that require a specialized computer environment based in part on cryogenic technology. Sounds promising, the others burn too hot, right, the regular data centers. But it’s not a reason to buy Alphabet because it’s nothing that’s ready at scale. I like Alphabet, own it for the Charitable Trust, but that’s because we like their dominance in Search, progress in YouTube, and incredible strength of Google Cloud services, well ahead of what people think. Quantum computing is just a long-term project.”
Alphabet (NASDAQ:GOOGL), a leading technology company, recently introduced a new quantum computing chip named Willow, which it claims could revolutionize the field. According to the company, Willow represents a significant breakthrough in the world of quantum computing. The chip is designed to solve complex problems that would typically take conventional computers 10 septillion years to complete.
Willow was created in one of the few specialized facilities globally, located in Santa Barbara, California. This state-of-the-art fabrication facility was specifically built to accommodate the complex needs of developing quantum computing hardware. One of the main challenges in quantum computing has been its high error rates, particularly as the number of qubits increases. However, the company claims Willow could significantly reduce these errors as it scales up, thus overcoming a major hurdle in the field.
Despite these promising developments, the application of quantum computing remains speculative, as there are no real-world uses for the technology at present. Alphabet (NASDAQ:GOOGL) has worked on Willow for over a decade, but experts acknowledge that the practical commercial use of quantum computing remains many years away. According to the head of Google’s Quantum AI lab, Hartmut Neven, the technology will likely not be ready for real-world applications before the end of the decade. Neven said while the breakthrough marks an important step in the progress of quantum computing, its commercial impact is still distant.
While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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