Alphabet Invests in Quantum Computing with Capex of $93 Billion - Intellectia AI
Summarize this article with:
Alphabet Invests in Quantum Computing with Capex of $93 BillionWritten by Emily J. Thompson, Senior Investment AnalystGOOG-0.85%GOOGL-0.84%Source: NASDAQ.COMUpdated: 3h ago0minsSource: NASDAQ.COM Quantum Computing Potential: Alphabet's quantum chip, Willow, completes a benchmark calculation in five minutes that would take a traditional computer an estimated 10 septillion years, showcasing its technological breakthrough and potential to become a leader in the quantum computing sector.
Capital Expenditure Commitment: Alphabet has pledged between $91 billion and $93 billion in capital expenditures by 2025, with a significant portion likely allocated to quantum computing, enhancing its competitive edge in emerging technologies despite a focus on AI.
Cash Flow Advantage: Over the past 12 months, Alphabet generated $74 billion in free cash flow, excluding capital expenditures, demonstrating its strong financial stability that enables substantial investments in quantum computing. Risk Aversion in Industry: Unlike many startup quantum computing companies facing massive losses, Alphabet's financial strength allows it to invest safely in quantum computing, appealing to investors looking for indirect exposure to this burgeoning industry. GOOG$330.34+Infinity%1D1D5D1M3M6MYTD1Y5Y1DLineCandleAnalyst Views on GOOGWall Street analysts forecast GOOG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 313.25 USD with a low forecast of 255.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.15 Analyst RatingWall Street analysts forecast GOOG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 313.25 USD with a low forecast of 255.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.14 Buy1 Hold0 SellStrong BuyCurrent: 333.160 Low255.00Averages313.25High350.00Current: 333.160 Low255.00Averages313.25High350.00BTIGBTIGNeutralmaintainAl Analysis2025-12-17ReasonBTIGBTIGPrice TargetAl Analysis2025-12-17maintainNeutralReasonBTIG says speculation yesterday that Google's (GOOG) for-sale home listings at the top of mobile searches have been pulled sparked "some relief" for Zillow Group (ZG). However, BTIG was able to surface the mobile for-sale listings test in a search this morning, with the listings still including data from the same platform as before along with sponsored links paid for by brokers, the analyst tells investors in a research note. "This saga may not be over just yet," according to the firm. BTIG believes that "while scary, this isn't relevant to near-term estimates." It keeps a Neutral rating on Zillow.TD CowenBuymaintain$335 -> $3502025-12-12ReasonTD CowenPrice Target$335 -> $3502025-12-12maintainBuyReasonTD Cowen raised the firm's price target on Alphabet (GOOG) to $350 from $335 and keeps a Buy rating on the shares. The firm increased the company's search estimates on its "positive" U.S. survey data. The data show ramping Gemini chatbot usage following the launch of Gemini 3, continued increases in search engagement driven by AI Mode and AI Overviews usage, and increasing share of ChatGPT users that are also using Gemini, the analyst tells investors in a research note.Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for GOOGUnlock NowWilliam BlairWilliam Blairmaintain$28.832025-12-11ReasonWilliam BlairWilliam BlairPrice Target$28.832025-12-11maintainReasonWilliam Blair took a "sober look" at Warby Parker's (WBRY) partnership with Google (GOOG, GOOGL). Warby shares are down 3% to $28.83 in afternoon trading. In the early days, "maybe" Google's artificial intelligence glasses can research $20M in annual sales, "but certainly not in 2026," the analyst tells investors in a research note. The firm says it has heard of "some relatively aggressive assumptions" on what the Google partnership with Warby Parker for AI-enabled glasses could contribute from a revenue and margin standpoint in recent weaks. Blair analyzed the potential for the glasses relative to the partnership between Meta (META) and EssilorLuxottica for the Ray-Ban Meta smart glasses. The firm points out that EssilorLuxottica has 55-times the amount of physical stores compared to Warby Parker. At an average price point of $450, assuming the Google AI glasses are priced competitively to Ray-Ban Meta, this would support total unit sales of 45,000, Blair estimates.CitizensMarket Perform to Outperformupgrade$302025-12-10ReasonCitizensPrice Target$302025-12-10upgradeMarket Perform to OutperformReasonCitizens upgraded Warby Parker (WRBY) to Outperform from Market Perform with a $30 price target. The firm views the upcoming launch of Google's (GOOG, GOOGL) artificial intelligence glasses on Warby's platform as a "significant catalyst" for the shares. The glasses are important for Google's ongoing distribution of search and other products, which explains why the company is willing to commit $75M to cover Warby's expenses for the launch, the analyst tells investors in a research note. Citizens believes the glasses can drive Warby Parker's estimates significantly higher. The stock in morning trading is up 4% to $24.16.See All RatingsAbout GOOGAlphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets.
The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube.
The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers.
Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services.
Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace.
Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.About the authorEmily J. ThompsonEmily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.Top NewsOil Firms Cautious on Venezuela Investment Push10 Jan 26GM Reports $7.1 Billion Charge Amid EV Shift09 Jan 26Stock Market Wraps 2025 with Double-Digit Gains01 Jan 26Novo Nordisk's Weight-Loss Pill Approval: Key Impacts23 Dec 25Related ArticlesQuantum Computing (QUBT) Stock Falls 38% in 2025, Acquires Luminar Semiconductor to Boost Recovery13:06 PMRobinhood (HOOD) Stock Soars 1,100% but Faces Market Risks13:06 PMSigh Up to Get Intellectia InsightsWhat factors contributed to Alphabet's 16% year-over-year revenue growth in Q3?How does the Universal Commerce Protocol aim to standardize retail AI systems?Will Alphabet's cloud business continue to outpace competitors in the AI market?Can Walmart's partnership with Google sustain its competitive edge in retail AI?How does Alphabet's Gemini AI model enhance its advertising revenue streams?People Also Watch