Will Alphabet Stock Soar After Oct. 28? History Offers an Answer That’s Strikingly Clear.

Alphabet (GOOG -1.62%) (GOOGL -1.62%) has been a major player in the artificial intelligence (AI) industry, contributing to its revenue growth and stock performance. The company utilizes AI technologies to enhance its own business and offer them to customers through Google Cloud unit. Given the high demand for AI capacity, Alphabet, Amazon, Microsoft, and Meta Platforms have collectively planned to invest over $700 billion this year in the infrastructure build-out.

As investors closely watch these companies for their potential to benefit from AI growth, Oct. 28 could serve as a catalyst for Alphabet's stock. The stock has already climbed about 7% this year, and history offers a strikingly clear answer about its potential performance on that date. Alphabet's path so far has been solid, driven by Google Search, which holds 90% of the market and generates 68% of the company's total revenue through advertising.

The company's development of its own family of large language models, Gemini, has further strengthened its position in the AI market, resulting in an 82% increase in Google Cloud revenue to over $24 billion. Alphabet's capital expenditures, primarily allocated to servers and data centers, support the AI build-out but have raised some concerns among investors.

Despite this, recent history suggests that Alphabet's stock may soar after its upcoming earnings report on Oct. 28, with the company advancing three times in the two weeks following the past four quarterly reports. As an investor, it is essential to focus on a company's long-term earnings prospects and stock performance potential.

With reason to be optimistic about Alphabet's future, it remains a great stock to own as the AI boom continues to unfold.