Prediction: Alphabet Will Report Google Cloud Revenue Growth Exceeding 100% on Oct. 28.
Google Cloud is quickly becoming the biggest source of operating income growth for Alphabet.
Alphabet is preparing to unveil its third-quarter earnings on October 28, with a particular focus on its cloud computing subsidiary, Google Cloud. Analysts predict that Google Cloud's revenue growth will surpass the 100% mark for the quarter. This prediction is based on several factors, including Alphabet's increasing capital expenditures, management's capacity constraints, and the company's strategy of offloading workloads to neocloud providers.
While Google Cloud's revenue has already doubled from the previous quarter, reaching nearly $7.5 billion, it still needs to surpass $30.3 billion to achieve a 100% year-over-year growth. The company's inventory of custom TPUs, valued at $10 billion, could further boost Google Cloud's revenue. Despite concerns about Alphabet's ability to generate strong returns on its AI investments, the cloud provider's growth trajectory and the popularity of its TPUs suggest it is a promising investment.
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