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Alphabet’s AI-Fueled Quarter Puts Nvidia Within Reach

Analysts say the Cloud beat proves Alphabet can convert AI spend into durable growth.

Overview

  • Alphabet, which reported first-quarter results on April 29, posted revenue of $109.9 billion, up 22%, with net income and EPS rising more than 80%.
  • Google Cloud revenue jumped 63% to about $20 billion, and its backlog nearly doubled to roughly $460 billion as enterprises bought AI capacity.
  • The stock rose about 9% after the report to lift market value near $4.8 trillion, and firms including Roth, RBC, Needham, Scotiabank, and Citizens raised price targets.
  • Paid subscriptions reached 350 million as Gemini Enterprise users grew about 40% quarter over quarter, and Waymo passed 500,000 driverless rides each week.
  • Business press and analysts say Cloud momentum and custom chips could lessen dependence on Nvidia and set up a run at the market’s top valuation.