Alphabet (GOOG) gained over 5% yesterday and could rise again today. The firm achieved a breakthrough in quantum computing.
Alphabet said that it has a new chip, code-named Willow. This chip may solve computing problems in only five minutes. In comparison, a classical computer would need more time than the history of the universe.
The firm’s achievements suggest that GOOG stock is undervalued. Stock markets are unwilling to pay a premium until the firm proves its Gemini AI will outflank that of ChatGPT. Until then, Microsoft (MSFT) will command a higher valuation, as will Amazon (AMZN).
In the near term, watch chip stocks. On December 12, Broadcom (AVGO) will post earnings.
Oracle fell by 6.67%, breaking below its 50-day simple moving average. The database firm reported momentum in its Oracle Cloud division. It is also cutting costs and improving margins in its cloud applications and infrastructure divisions.
T-Mobile (TMUS) may potentially trade back to its 52-week high in the weeks ahead. CEO Mike Sievert said that the postpaid business will add a healthy three million subscribers.
T-Mobile is an attractive telecom holding compared to Verizon (VZ) and AT&T (T). The firm said that this quarter is back-end loaded. This momentum will play out as customers plan their device upgrades.
