Prediction: It's Not Too Late to Buy Alphabet Stock as Growth Accelerates

Core Insights - Alphabet demonstrates strong growth in its search and cloud computing sectors, with significant upside potential remaining despite a 50% stock increase this year [1] Group 1: Financial Performance - Google Cloud revenue increased by 34% to $15.2 billion, with operating income rising 89% to $3.6 billion, indicating robust demand for AI services [2] - Google Search revenue grew nearly 15% to $56.6 billion, driven by AI Overviews and AI Mode enhancements [5] - Total quarterly revenue rose by 16% to $102.3 billion, with earnings per share climbing 46% year over year to $3.10, surpassing analyst expectations [8] Group 2: Strategic Investments - The company plans to increase capital expenditure to between $91 billion and $93 billion for data center capacity expansion, up from a previous estimate of $85 billion [3] - Alphabet's Waymo robotaxi service is expanding into new U.S. cities and international markets, indicating growth in autonomous vehicle services [7] Group 3: Market Position and Future Outlook - Alphabet's AI capabilities are enhancing its search business, alleviating concerns about AI's impact on revenue [10] - The Google Cloud segment is expected to continue its growth trajectory, supported by its Gemini large language model and custom tensor processing units [11] - The stock is attractively valued with a forward P/E ratio of around 27 times 2026 estimates, making it a long-term investment opportunity [12]