Alphabet's AI Engine Powers Stock Surge as Cloud Backlog Explodes
TL;DR
Alphabet's stock has more than doubled as its AI-driven cloud growth becomes the main revenue engine: Google Cloud revenue rose 63% in Q1 2026 to over $20B, and the backlog swelled to $462B, signaling strong demand even as management cautions the company is currently compute-constrained. The firm plans about $180-190B in capital expenditures in 2026, with 2027 capex expected to rise, implying a costly race to meet AI-driven demand.
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