Google Cloud Revenue Surges: Alphabet Focuses on $100 Billion TPU Opportunity Ahead of Q3 Earnings - Alph

Alphabet shares stayed under pressure Friday after a roughly 3% drop Thursday morning, as investors weighed limits on AI computing capacity, heavy capital spending and tougher cloud competition ahead of third-quarter results. CEO Sundar Pichai said Google Cloud is prioritizing constrained computing for internal DeepMind models, raising the risk that some commercial customers shift workloads to rivals. The market is also tracking Alphabet’s projected $195 billion to $205 billion in 2026 capex for AI and data-center expansion. Analysts cited include Bank of America, projecting Q3 revenue of $111.4 billion and GAAP EPS of $3.07, with Google Cloud revenue growth of 93%. Alphabet reports Oct. 28.