Alphabet Shares Surge on Quantum Breakthrough

FINANCE
Alphabet Shares Surge on Quantum Breakthrough

Alphabet shares jumped 6% on Tuesday following Google’s announcement of “Willow,” a breakthrough quantum computing chip. Willow represents a significant advancement in quantum technology, outperforming its 2019 predecessor on benchmarks and addressing a critical issue in error correction—a bottleneck in quantum computing development. The chip uses “qubits” instead of traditional transistors, allowing it to process complex computations that conventional computers cannot.

Willow is the second milestone in Google’s six-step roadmap to create practical quantum computers. Currently equipped with around 100 qubits, Google plans to scale to systems with 1 million qubits, enabling real-world applications in drug discovery, fusion energy, and battery design. CEO Sundar Pichai described Willow as a step closer to commercially relevant algorithms and highlighted its potential for industries requiring large-scale simulations.

The announcement received praise from tech leaders, including Tesla CEO Elon Musk and OpenAI CEO Sam Altman. Musk even suggested a future collaboration to build quantum clusters in space with SpaceX’s Starship. While practical applications of quantum computing remain years or decades away, Google’s progress puts it at the forefront of an intensifying race with competitors like Microsoft, Nvidia, and IBM, as well as startups and university researchers.

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Musk and Pichai Push Solar Expansion

Elon Musk’s affinity for solar energy persists, even as he navigates closer ties to right-wing politics. In a recent exchange with Sundar Pichai, CEO of Google-parent Alphabet, Musk proposed covering deserts with solar panels to quintuple global energy supply. Pichai agreed, calling solar “the most obvious path.”

While this may have been theoretical, it’s a promising signal for the solar industry. Despite Donald Trump’s past criticism of clean energy, solar companies flourished during his first presidency, with Invesco’s solar ETF (TAN) soaring 544%, far exceeding the S&P 500’s gains. Recent losses after Trump’s reelection have partially rebounded, as investors recall solar’s resilience under his prior term.

Economic and technological trends favor solar. AI, computing, and electric vehicles—industries led by Musk’s Tesla—are driving demand for energy. Additionally, solar benefits from The Inflation Reduction Act, which allocated $400 billion to clean energy, creating jobs even in Republican districts.

Tariffs remain a potential challenge, but companies like Sunnova have adapted, shifting to domestic suppliers. Musk and Pichai’s vision for expanded solar could align with eased permitting under Trump, unlocking vast public lands for development. The economic case is undeniable, and the industry appears poised to thrive, regardless of political hurdles.

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Rising Threats Shake Health Industry

The murder of UnitedHealthcare CEO Brian Thompson on Dec. 4 has left the healthcare industry grappling with fear and uncertainty. Andrew Chastain, CEO of healthcare-focused search firm WittKieffer, publicly addressed the rising violence against health workers in a LinkedIn post. He emphasized that leaders should not have to fear for their safety while making decisions for their organizations.

Chastain noted that many healthcare leaders now wonder, “Could it happen to me?” He described Thompson’s death as part of a broader trend of violence targeting healthcare workers, including physicians and nurses. “Violence aimed at health care workers is on the rise,” Chastain wrote, urging leaders to remember the profound impact of their work.

Thompson’s murder also highlights ongoing challenges in healthcare, including financial strains from inflation and workforce shortages. Luigi Mangione has been charged with Thompson’s killing and is being held without bail.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.