This scholarship will be the biggest quantum computing winner of 2025

In recent months, investors have taken a renewed interest in quantum computing. Traditional computer bits can contain only zeros or ones. However, quantum bits, commonly called qubits, can represent any value between zero and one. This advancement allows for exponentially faster computing speeds compared to traditional computers.

The problem lies with stability, as the more qubits a computer can process, the more prone to error it becomes. Therefore, most industry analysts believe that quantum computing is years away from commercial viability.

Fortunately, Google parents Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has developed a quantum chip that is a possible game changer for the industry. With that development, Alphabet could be the most successful quantum computing stock in 2025. Here’s why.

Indeed, consumers and investors know Alphabet best for products such as Google Search, YouTube, the Android operating system and Google Cloud. However, the company founded Google Quantum AI in 2012 and has been studying the technology and building computers ever since.

Much of the focus on Alphabet in the quantum computing space revolves around Willow, its quantum chip. Willow stands out because reduce errors like adding qubits. This is in contrast to past quantum chips, whose error rates increased as the number of qubits increased.

Also, Willow performed a standard benchmark calculation in about five minutes. This is known as estimates that the fastest supercomputers in use today take 10 septillion (10^25) years to do the same calculation, a period longer than the entire history of the universe.

Certainly, quantum computing is a technology looking for real-world applications. However, the ability to tackle error problems bodes well for Alphabet’s efforts to make quantum computing both beneficial and profitable.

In addition, with commercial viability likely years away, the company’s other attributes may take a back seat in 2025, as efforts regarding quantum computing remain focused on research and development.

Indeed, a massive and highly profitable digital advertising business will likely help fund the company’s research. In addition, a fast-growing Google Cloud business contributes to the increase in revenue shares and has made Alphabet increasingly critical in the IT world with its presence in the cloud and long-term innovation in the world. artificial intelligence (AI).

Thanks to the success of those businesses, Alphabet held $93 billion in cash as of the end of the third quarter of 2024. In addition, it generated nearly $62 billion in free cash flow in the first nine months of 2024 alone. Those assets put Alphabet in a strong position to fund quantum computing and any supporting technology.

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