Alphabet’s quantum computing team marked a major milestone in late 2025 when its Willow processor solved a complex optimization problem in under ten minutes—an operation that required more than 100 hours on a leading classical supercomputer. The Willow design, a 72-qubit superconducting chip, demonstrated error rates 30% lower than the company’s previous prototype. These advances position Alphabet as the first major technology firm to publicly verify quantum performance advantages, strengthening its claim as the top pick for investors seeking long-term exposure to the emerging quantum computing market.

While quantum computing remains a high-growth venture, Alphabet’s core businesses continue to deliver robust cash flows. In fiscal 2024, advertising revenues reached $224 billion—up 12% year-over-year—driven by strong demand for search and YouTube ads. Its cloud division posted $31 billion in sales, growing 28% and narrowing the gap with industry leader AWS. At an estimated 29 times forward earnings, Alphabet’s multiple reflects confidence in sustained double-digit revenue growth across its three primary segments: search, video advertising and cloud services.

Alphabet originally invested $1 billion in SpaceX’s $10 billion funding round in 2015 and today holds roughly 7% of the company. With SpaceX exploring a potential IPO valuation of $1.5 trillion, Alphabet’s stake could translate into a paper gain of more than $100 billion at flotation. Even if SpaceX remains private, the firm’s plan to spin off Starlink—its satellite-internet unit that generated 76% of SpaceX’s $15.5 billion revenue in 2025—could unlock significant value for Alphabet shareholders through asset sales or secondary transactions.