Alphabet hikes capex again after earnings beat on strong ad, cloud demand

Core Insights - Strong demand for AI has significantly contributed to Alphabet's financial performance, with both advertising and cloud computing segments exceeding revenue expectations [1][3] - Alphabet has increased its projected capital expenditures for the year to between $91 billion and $93 billion, reflecting aggressive investment strategies [1][2] Financial Performance - Alphabet reported total revenue of $102.35 billion for the quarter, surpassing analysts' expectations of $99.89 billion [3] - Adjusted profit per share was $3.10, exceeding estimates of $2.26 [3] Cloud Computing Segment - Google Cloud achieved a revenue growth of 34%, driven by rising enterprise demand for AI-powered infrastructure and data analytics services [3] - The cloud unit generated revenue of $15.16 billion, exceeding estimates of $14.72 billion, and has a backlog of non-recognized sales contracts that grew to $155 billion [4] - Google Cloud is narrowing the gap with competitors like Microsoft Azure and Amazon Web Services, supported by the adoption of Vertex AI and Tensor Processing Units [5] Advertising Business - Revenue from Google's advertising business increased by 12.6% to $74.18 billion, surpassing estimates of $71.79 billion, indicating resilience in the digital ad market [6] - The advertising unit remains a major revenue contributor for Alphabet, competing in a crowded market as economic conditions improve [6]