The Nasdaq Composite crossed a closely followed mark for the first time ever on Wednesday. Investors can thank Alphabet ‘s breakout on the back of a quantum announcement. The tech-heavy index eclipsed the 20,000 level , while the more-concentrated Nasdaq 100 also touched all-time highs. One of the best performers within tech was the Google parent, whose shares surged 5.5% and also hit a new intraday high. Alphabet rallied on Wednesday after the megacap technology company released its first version of an artificial intelligence model. That marks a second day of eye-popping gains for the stock, as shares jumped more than 5% on Tuesday following Alphabet’s unveiling of a “breakthrough” quantum computing chip called Willow. GOOGL ALL mountain Alphabet, all-time Alphabet shares are now tracking for their best week since March 2023 as investors cheer the quantum news. At session highs on Wednesday, the stock surpassed the $195 mark. “The stock is up over 10% this week on even more excitement around the new Willow chip and their case for quantum computing,” said Brian Mulberry, client portfolio manager at Zacks Investment Management. “A real breakthrough that connects the momentum behind AI as an idea to a real way to engage with the technology — that is going to be more and more important to investors over this next year, showing a way to monetize AI with consumers.” Mulberry called Alphabet “one of the most innovative companies in the modern technological age.” Wall Street sees even more upside ahead for Alphabet’s Class A shares. The average analyst polled by LSEG has a buy rating and a price target that suggests shares can climb more than 6%. One of those bullish analysts is Bank of America’s Justin Post, who also cited a “long history of innovation” and a “track record” of successfully monetizing on next-generation technology. Post reiterated his buy rating following the announcement, while also noting that the stock’s valuation shows an “underappreciation.” “Advancements with Willow, which illustrate that Alphabet remains at the leading edge of technology innovation, are important for stock sentiment,” Post wrote to clients on Tuesday. “Over the long term, quantum innovation has the potential to create a significant tech moat for Alphabet.” Alphabet’s Willow announcement boosted other quantum computing names such as Rigetti Computing . The Defiance Quantum & AI ETF (QTUM) also hit all-time highs on Wednesday.
How Alphabet’s unexpected quantum rally pushed the Nasdaq to new highs