Alphabet is winning the AI revolution. Here's how Mike Khouw is trading it
Alphabet delivered a standout quarter, driven by strong cloud revenue and increased investment in AI infrastructure. The company is not only thriving in the AI revolution but appears to be leading it, with Gemini-powered services seeing exceptional demand. Management's decision to raise capex guidance to $190 billion underscores its ambition for long-term dominance.
- ▪Alphabet's cloud revenue surged, capturing growing enterprise AI workloads.
- ▪Demand for Gemini-powered services is exceeding optimistic forecasts.
- ▪The company raised its full-year capex guidance to as much as $190 billion.
- ▪Alphabet is generating significant current revenue from AI, not just investing in it.
- ▪The strong results suggest Alphabet is leading the AI revolution alongside its peers.
Opening excerpt (first ~120 words) tap to expand
Alphabet (aka "Google") is clearly firing on all cylinders, more cylinders perhaps than the Street even realized it had. The quarter was frankly a blowout. Surging cloud revenue and raised capital expenditure (capex) guidance demonstrate that the company's enormous investments are potentially paying off more quickly than many—perhaps even many within the company—had anticipated.The takeaway could not have been clearer: Alphabet isn't just surviving the AI revolution — in many ways, it's leading it.Why? Because while their investments are enormous, this company is making money now in this space. Cloud and artificial intelligence were the undisputed stars of the quarter. Google Cloud continues to grow rapidly, capturing enterprise workloads as businesses accelerate their AI buildouts.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Top.
Discussion
0 commentsMore from CNBC — Top
