Alphabet's Cloud Business Soars, AI Strategy Draws Attention
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2026
0mins
Source: CNBC
- Cloud Business Growth: Google Cloud grew 63% year-over-year in Q1, outpacing Azure and AWS, with a backlog of $462 billion, half of which is expected to be recognized in the next 24 months, indicating strong market demand and client trust.
- Surge in AI Product Revenue: Revenue from generative AI products surged approximately 800% year-over-year, with CEO Sundar Pichai highlighting faster customer acquisition and deeper relationships with existing clients as key growth drivers, showcasing Google's competitive edge in AI.
- TPU Sales Outlook: Google plans to start delivering its custom AI chips to external customers in the second half of 2026, which could significantly enhance the company's profitability, although investors are still focused on details regarding sales models and margins.
- Relationship with Anthropic: Google's ties with AI startup Anthropic are under scrutiny, as the reported $200 billion cloud commitment could represent a major portion of Google's future cloud revenue, reflecting the company's strategic positioning in AI infrastructure.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to fall
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 364.900
Low
255.00
Averages
336.08
High
400.00
Current: 364.900
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Resilience: Despite Abel's strategic shifts, Berkshire retains nearly $400 billion in cash, representing 36% of its market cap, positioning the company well to weather downturns, although further investments in tech stocks should be approached with caution.
See More
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