Shares of Google parent Alphabet rose about 5% on Tuesday after it unveiled a new generation chip that the company said helped overcome a key challenge in quantum computing.

The stock jumped a day after the company unveiled its Willow chip, and as one Wall Street analyst named it a top stock pick heading into 2025.

Alphabet shares rose a day after Google said it developed a new chip that moves a step forward in the tech industry’s longtime dream of developing commercially relevant quantum computing. The chip, called Willow,