Alphabet Smashes $100 Billion Quarter as AI Takes Center Stage

This article first appeared on GuruFocus.

Alphabet (GOOGL) just pulled off a huge milestone its first-ever $100 billion quarter, thanks to AI powering nearly every part of the business. CEO Sundar Pichai called it a terrific quarter, saying growth was strong across Search, YouTube, and Cloud, and that AI is now driving real business results. The company's Gemini app has exploded to 650 million monthly users, with queries tripling from last quarter, while Google Cloud's backlog jumped 46% to a massive $155 billion.

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Pichai said Google is scaling up fast, using both NVIDIA's (NVDA) GB300 chips and its own TPUs to meet surging AI demand. CFO Anat Ashkenazi added that total revenue rose 16% to $102.3 billion, and profit surged 33% to $35 billion, with Cloud profits nearly doubling.

Alphabet is now spending even more to keep the momentum going CapEx for 2025 is up again, now expected between $91 and $93 billion. Management sounded upbeat, analysts were intrigued, and one thing's clear: Google's AI bet isn't just paying off, it's rewriting the playbook.

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