Alphabet's AI Bet Delivers Record $100 Billion Quarter, Cloud Backlog Surges To $155 Billion - Alphabet (NASDAQ:GOOGL)

Core Insights - Alphabet Inc. achieved its first-ever $100 billion revenue quarter in Q3, indicating successful financial gains from its AI strategy [1] Group 1: AI and Cloud Performance - Google Cloud's AI-driven backlog surged by 46% sequentially to $155 billion, reflecting strong enterprise demand [2] - The Cloud segment signed more billion-dollar deals in the first nine months of 2025 than in the previous two years combined, highlighting its growth [2] - CEO Sundar Pichai emphasized the direct correlation between AI adoption and Cloud's success, marking it as a key growth driver [2][4] Group 2: Search Business Growth - Google's Search business is experiencing significant growth due to AI, with AI Mode reaching over 75 million daily active users globally [3] - The introduction of AI Overviews and AI Mode is enhancing user engagement, suggesting that AI is benefiting Google's advertising ecosystem rather than harming it [4] Group 3: YouTube Revenue Growth - YouTube reported a 15% increase in advertising revenue, with YouTube Shorts now generating more revenue per watch hour than traditional video in the U.S. [6] Group 4: Capital Expenditures and Future Investments - Alphabet announced a significant increase in its 2025 capital expenditures to between $91 billion and $93 billion, with further increases expected in 2026 to support AI infrastructure [7] - This investment strategy includes scaling NVIDIA GPUs and Google's own TPUs, reflecting confidence in long-term returns from AI leadership [8] Group 5: Stock Performance - Shares of GOOG closed 2.51% higher at $275.17, with a year-to-date increase of 44.35% and a 56.22% rise over the year [9]