Alphabet Inc.'s Human Resources are Rising

Alphabet Inc.'s Quarterly Report Pleases Investors

Alphabet Inc. (NASDAQ:GOOGL) is attracting attention among artificial intelligence stocks this week. TD Cowen raised its price target from $335.00 to $280.00 on October 30 and maintained its "Buy" rating. This rating confirmation came after Alphabet's quarterly earnings report.

The tech giant surpassed analyst expectations in its first-quarter earnings; total revenue exceeded consensus estimates by 2.4%. The performances of Search, Cloud, and YouTube showed results that were more than 3% above expectations.

Moreover, operating income came in 2.5% above company forecasts, with margins showing an annual improvement of 350 basis points. According to Alphabet's management, artificial intelligence significantly supported growth in both the Search and Cloud segments.

The Gemini AI platform reached 650 million active users per month, with queries tripling on a quarterly basis.

The company also raised its capital expenditure guidance for 2025 to approximately $92 billion at the midpoint, up from the previous guidance of $85 billion, reflecting continued investment in AI infrastructure.

"We exceeded expectations overall with the winds of artificial intelligence; GOOGL's total revenue came in at 2.4% above consensus, with operating income landing 2.5% better than our estimates (margins increased by 350 basis points)", the company stated. While GOOGL has traditionally been viewed as a risk-free stock, we believe that some AI stocks have greater upside potential. If you're looking for an undervalued AI stock that could benefit significantly from tariffs stemming from the Trump era and domestic investments, you might want to check out our free report on the best short-term AI stocks.