Business & Finance
Alphabet Earnings Need to Show Cloud Growth as AI Spending Soars
Key Points
Alphabet Earnings Need to Show Cloud Growth as AI Spending Soars With AI spending skyrocketing, investors are looking for Alphabet Inc.’s earnings to show strong growth in its cloud-computing business, which would demonstrate a clear return on the company’s investments. The shares are up a relatively modest 11% in 2026 after soaring 65% in 2025, as investors grow increasingly concerned about how much Big Tech firms are spending to build out their artificial intelligence capabilities....
Alphabet Earnings Need to Show Cloud Growth as AI Spending Soars
With AI spending skyrocketing, investors are looking for Alphabet Inc.’s earnings to show strong growth in its cloud-computing business, which would demonstrate a clear return on the company’s investments.
The shares are up a relatively modest 11% in 2026 after soaring 65% in 2025, as investors grow increasingly concerned about how much Big Tech firms are spending to build out their artificial intelligence capabilities. Chipmakers have soared as the main beneficiaries of the largesse, while the Magnificent Seven behemoths — which are providing much of that cash — have barely moved.