Google Cloud Grew 82% to $24.8 Billion, Reigniting Buy Calls on Alphabet

Alphabet's cloud business posted revenue of $24.8 billion last quarter, up 82% from a year earlier, according to figures CEO Sundar Pichai disclosed. At the same time, the company's Gemini app reached 950 million monthly users, a scale that puts it among the most widely used consumer AI products. The numbers landed as several Wall Street analysts reaffirmed Alphabet as their top AI pick following the launch of a new Gemini agent product, part of a broader round of AI-related rating moves this week. The combination of accelerating cloud growth and expanding consumer reach is feeding a narrative that cloud infrastructure, not search advertising, could become Alphabet's primary growth engine going forward. What remains unresolved is whether cloud margins can keep pace with that growth as Alphabet spends heavily on AI data center capacity, a question raised elsewhere this week about Microsoft's own AI cost structure. Investors will get a clearer read on durability when Alphabet reports its next quarterly cloud segment margins.