lphabet (GOOGL) Posts Q3 Earnings Beat; AI Helps Boost Search and Cloud Growth

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks in the Spotlight This Week. On October 30, TD Cowen raised its price target on the stock to $335.00 from $280.00 while maintaining a Buy rating. The rating affirmation follows Alphabet’s quarterly earnings report.

The tech giant’s third-quarter earnings beat analyst expectations, with total revenue beating consensus estimates by 2.4%. Search, Cloud, and YouTube all beat expectations by 3%, the firm noted.

Meanwhile, operating income was 2.5% above the firm’s estimate, with margins improving 350 basis points year-over-year, excluding an EC fine.

According to Alphabet’s management, artificial intelligence has significantly driven growth in both Search and Cloud segments.

Moreover, their Gemini AI platform reached 650 million monthly active users, with queries increasing threefold quarter-over-quarter.

The firm also highlighted how the tech giant has raised its 2025 capital expenditure guidance to approximately $92 billion at the midpoint. This is up from the previous guidance of $85 billion, which reflects continued investment in AI infrastructure.

“Beat Across the Board Led by AI Tailwinds; GOOG total rev was +2.4% vs cons. on ~3% beats at Search, Cloud, & YouTube. Op Inc was +2.5% vs our est (and margins were +350bps y/y x-EC fine) as mgmt. credited AI for driving growth at Search & Cloud. Mgmt. raised ’25 capex guide (again) to ~$92BN (midpoint) vs $85BN prior. Gemini reached 650MM MAUs, and queries were +3x q/q. We raised LT ests, incl capex; PT to $335, maintain Buy. GOOG +7% AH.”

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.

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