Tech Giant has increased its 2025 capital cost forecast to $ 10 billion to 85 billion D to 85 billion and indicated more costs next year, leading to the rising AI race for cloud demand and competitive in the rising AI race.
Its cloud-computing unit jumped about 32% of the second quarter revenue, which surpassed expectations, as investing in the in-house chips and Gemini AI model.
Revals gives good results for Micros .Fft and Amazon.com, both of which are leading the data center investments and operating large cloud businesses.
Burnstein analyst Mark Shmulik said Google came back to fight this quarter. He added, “Investors have long been a contender for Google to be more ‘aggressive’ in the AI race.”
With its discovery of the transformer model, the initial AI Pioneer – Most Modern Generative AI’s foundation – Google was lagging behind OpenAI and Micros last year.
But this year it is back, AI Mode reaches its extensive rollout only to 100 million monthly users of two months, and Gemini has surpassed 450 million monthly users.
Its advertisement, which holds about three-fourths of its sales, is also facing economic uncertainty created by tariffs and geographical political stress.
Revenue in the business has increased by more than 10.4%, a positive signal for competitors like Meta and SNAP that depends on digital ads for most of their income.
After at least 27 brokerage results, Google raised their price targets on stock, scoring a month before $ 200 to $ 220.
Nevertheless, some analysts warned that more costs could make fresh tests from investors, who have been largely sides this year. In 2025, the shares of alphabet have increased by only 0.5%, an increase of 20% of micros .ft and a 22% increase in meta stock, with regulatory battles that are looking to break its illegal monopoly in search and add-tech markets.
According to data compiled by LSEG, the 12-month front cost-margin proportion of alphabet is 18.88, which lags behind Micros .Ft. 33.03 and Amazon’s 33.31.
“On paper, it has all the right tools for AI – Cutting Edge Models Dello and Large Distribution,” said Matt Britzman, a senior equity analyst at Hargraves Lensdown.
“He said that unless the main invention can be canbilize income, and some clarity around the current legal battles, there is sufficient uncertainty for the near -term side -time side.”
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