Alphabet's AI Push Is Accelerating -- Is the Stock a Buy Now?

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) once again defied its critics who continue to believe the company will be a loser in artificial intelligence (AI). Not only did the company once again produce strong search revenue growth in its most recent earnings report, but that growth accelerated. In addition, Alphabet said that AI was positively impacting every part of its business.With cloud computing demand continuing to surge, the company upped its capital expenditure (capex) budget by an additional $10 billion to build out its data center capacity. It said in its Q2 earnings report that it now plans to spend $85 billion in capex this year, and anticipates spending even more in 2026, given the strong demand it's seeing for Google Cloud products and services.AI was the biggest growth driver behind Alphabet's strong results, with cloud computing once again leading the way. Google Cloud revenue surged 32% to $13.6 billion in the second quarter, while segment operating income skyrocketed from $1.2 billion a year ago to $2.8 billion. However, the company said its current capacity constraints could extend into 2026, despite its large capex investments. Ultimately, that's not a bad problem to have, as it's just a sign of how strong demand is.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool