The shares of the parent company of Google, A, rose about 5% yesterday after the Silicon Valley giant unveiled a next-generation chips, Willow, which the company says helps overcome a key challenge in the field ofquantum computing.
“In our experiment published in the journal Nature, we managed to run in less than 5 minutes a standard benchmark calculation that would take Frontier, the world's second fastest supercomputer, 10 septillion years today, a number that far exceeds the age of the Universe,” he said.
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Technology companies are betting on quantum computing in the hopes of developing systems that can run at speeds far faster than traditional silicon-based computers.
Self-correcting qubit errors
- constituent elements quantum computers, called “quibit“, even though they are fast, they are subject to errors, which makes it difficult to ensure that quantum computers are reliable and commercially viable. The more qubits used in quantum computing, the more errors typically occur. But Google said it has found a way to concatenate the qubits in the Willow chip so that the error rates decrease as the number of qubits increases, adding that it can also correct errors in real time. “It will have important implications. in science, medicine and finance. Willow reduces errors exponentially and could lead to important innovations and discoveries across industries,” he said. Thomas Hayes, chairman and managing member of Great Hill Capital.
“What we have been able to do in quantum error correction is a really important milestone, for the scientific community and for the future of quantum computing, which is to demonstrate that we can create a system that operates below the quantum error correction threshold,” he explained to Live Science Julian Kelly, director of quantum hardware at Google Quantum AI.
The actions of A yesterday were on track to post their best day since late April. The stock is up 25% so far this year. The company's shares are trading at a 12-month trailing price-to-earnings ratio of 19,58, compared with Microsoft's 32.03 and Amazon's 36,79, according to data compiled by LSEG. Earlier this year, Microsoft and the quantum computing company Quantinum They said they had made a major step toward making quantum computers a commercial reality by making them more reliable.
Oracle falls after strong but below-expected data
In contrast, Oracle shares fell more than 9% yesterday to $177,74 after quarterly revenues were below Wall Street expectations, highlighting investors' concerns about the strong competition in the cloud sector, thein a context of strong demand from AI service providers.
A key level is seen at $172,78, which, if reached, would mean a loss of nearly $50 billion in capitalization for the company. Oracle shares have risen more than 80% this year through Monday, as investors believed in investments aimed at boosting the'cloud infrastructure to meet the growing artificial intelligence question and close the gap to market leaders. “As the rapid backlog appears to stabilize, investor attention is likely to shift to Oracle’s bottom line and its ability to convert this demand into accelerating revenue and sustained double-digit earnings per share growth,” Morgan Stanley analysts said in a note.
Oracle has shown a turnover of $14,06 billion in the second quarter, up 9% from a year earlier but below analysts' average estimate of $14,11 billion, according to data compiled by LSEG. In the three months to November 30, net profits are up 22% to $3,15 billion, or $1,10 per share. Adjusted EPS rose 10% to $1,47 versus the consensus of $1,48. Revenue rose 9% to $14,06 billion versus analysts' expectations of $14,12 billion.
The leading enterprise software provider’s weekly performance versus the S&P 100 shows a weaker relative strength in the stock, which could fall prey to sellers looking to take advantage of potential weakness, technical analysts say. Oracle’s short-term review charts a strengthening bull run with immediate resistance seen at $179,9 and first support identified at $173,2.
Investors have been betting on AI-related companies, as they expect the technology to be a strong driver of future growth. “Oracle’s cloud infrastructure revenue continues to grow as demand for AI-based computing on the platform increases,” DA Davidson said in a note.
At least 21 brokers raised their price targets on the stock, with two raising expectations to $220. “We also believe previously announced multi-cloud deals (such as those with Azure and Google Cloud) are helping to boost legacy margins, which helps offset the OCI mix (although OCI margins are improving),” analysts at Melius Research said, referring to the cloud business.
