This article first appeared on GuruFocus.
Alphabet (GOOG) shares climbed about 3% on Monday as the Google parent joined the Dow Jones Industrial Average, replacing Verizon Communications,
Alphabet gained ground despite a recent pullback that saw the stock lose roughly 10% over the past month. The move came alongside a broader rebound in large-cap technology stocks, with several major AI-linked names also trading higher.
Alphabet drew additional attention following reports that demand for its artificial intelligence services has become so strong that the company has placed limits on usage by some customers, including Meta Platforms (META). The reported restrictions suggest growing interest in Alphabet’s AI offerings as enterprises expand AI deployments.
Alphabet has increasingly benefited from rising demand for cloud and AI infrastructure. In its latest reported quarter, Alphabet said revenue from its cloud division rose 63% year over year, marking the fastest growth rate since the company began separately disclosing the segment’s performance.
Analysts remain focused on Alphabet’s cloud business as a key growth driver. TD Cowen projects Alphabet’s cloud revenue could expand at a compound annual growth rate of 37%, reaching about $480 billion by 2031 from roughly $100 billion this year.
