Alphabet’s cloud backlog hits $514B after 82% revenue growth

Alphabet's CEO Sundar Pichai reported 82% year-over-year revenue growth for Google Cloud, with a backlog of $514 billion. Search remains the primary revenue driver, contributing 55% of total revenue. Cloud's operating margin reached 35%, but it still represents a smaller share of overall profits. Pichai highlighted long-term growth potential for both Search and Cloud.

Broadcom (AVGO) reported strong AI hardware sales, with $16.7B in Q3 AI semiconductor revenue, up 221% YoY. The company expects to accelerate Ironwood shipments to Anthropic, with aggressive deployment plans. Google's TPU technology is central to this relationship, with Broadcom supplying components and Anthropic accessing TPU capacity. Alphabet (GOOGL) reported 82% cloud revenue growth but high capital expenditures. Investors should monitor hardware shipments, capacity consumption, and profit r

Google (Alphabet) plans to invest €13 billion in Finland by 2027-2028, expanding data centers and securing energy. The deal includes a 22-year power agreement with Fortum for nuclear energy. Fortum's shares rose 11% on the news. Google aims to support 37,000 jobs and boost Finland's GDP by €3.6 billion annually during construction. The investment focuses on AI infrastructure and sustainable energy, with heat recovery and wind power agreements.

Alphabet (GOOGL) stock is priced at $332, with options indicating a 68% probability range of $233 to $474 over the next year. This range is typical for the stock, with a 16% chance of it falling below $233.25 or rising above $474.27. Implied volatility is around 35%, slightly above the past year's realized volatility. Alphabet's capital spending is increasing, with free cash flow under pressure, impacting margins.

U.S. stock indices fell on Friday, with the S&P 500 down 2.64%, Nasdaq 100 down 4.77%, and Dow Jones down 1.35%, due to strong jobs data raising rate hike bets. Meta dropped on reports of a potential stock sale. TSLA fell 5% after postponing its Roadster demo. GME's CEO is pursuing eBay. META may raise equity for AI. BA will start 737 Max production. MSTR dropped with Bitcoin. GOOGL secured a cloud deal with SpaceX.

Alphabet (GOOGL) plans a $15.1B investment in Finnish AI infrastructure, expanding its data centers and securing nuclear power. This boosts Nvidia (NVDA) due to increased AI demand, but Google's custom AI accelerators may limit Nvidia's gains. Alphabet's 2026 capex is projected at $195B-$205B, with AI revenue potential offset by high spending.