Quantum computing and speculative artificial intelligence stocks will try to bounce back today. On Wednesday, Alphabet (GOOG) announced substantial developments in its quantum computing research.
Alphabet’s CEO, Sundar Pichai, said that its quantum computing chip, named Willow, achieved a first-ever verifiable quantum advantage. The algorithm ran 13,000 times faster than the top existing classical algorithm. GOOG stock gained nearly 1.8% only to settle up by 0.47% on Oct. 22.
The news hurt Rigetti (RGTI), BigBear AI (BBAI), Quantum Computing (QUBT), and D-Wave Computing (QBTS). Momentum traders may no longer count on blind speculation for those stocks to rise. Bears on QBTS stock, for example, hold a 17.05% short float. Their patience in betting against the firm will pay off in the weeks to come.
Alphabet’s quantum division has a strong team. The Quantum AI team founders won the Nobel Prize in Physics. One of three laureates for 2025 is Google’s Chief Scientist of Quantum Hardware.
Impact
Quantum computing developments are a big problem for cybersecurity. It could likely crack systems that rely only on password protection. Fortunately, CrowdStrike (CRWD), Palo Alto Networks (PANW), and SentinelOne (S) are some of the cybersecurity firms whose business would increase if such powerful systems cracked passwords.
