The Top Cloud Stock for AI Investors to Buy Before It Surges 20%

Core Insights - Alphabet's Q3 earnings report revealed a record revenue of $100 billion, highlighting its position as a leading AI stock [1] - Analysts have updated their ratings for Alphabet, with price targets set at $336 by Scotiabank and $340 by JPMorgan, indicating a potential 20% increase from current levels [2] Alphabet's Growth Drivers - Google Cloud is identified as a significant growth driver, currently generating $15.15 billion in revenue for Q3, a 33% increase year-over-year [6] - The global data center market is projected to grow from $347.6 billion in 2024 to $652 billion by 2030, with Google Cloud holding a 13% market share, positioning it for substantial growth [4][5] Financial Performance - Google Cloud's operating income rose from $1.95 billion to $3.59 billion year-over-year, with a backlog of $155 billion, up 46% [6][7] - Alphabet plans to increase capital expenditures to $91-93 billion in 2025 to meet demand, up from a previous estimate of $85 billion [8] Advertising Business Impact - Google Advertising remains the primary revenue source, accounting for 72% of total revenue, which supports the growth of Google Cloud [9][10] - The strength of the advertising business provides Alphabet with the financial capacity to expand Google Cloud and compete effectively against AWS and Microsoft Azure [11]