Alphabet, the parent company of Google, has surpassed financial expectations in its core advertising and cloud computing sectors, fueled by robust AI demand. The tech giant boosted its projected capital expenditure to as much as $93 billion, amid whispers of a potential AI bubble.

The company reported $102.35 billion in total quarterly revenue, outperforming analysts' predictions of $99.89 billion. Adjusted profit per share also exceeded forecasts, reaching $3.10 against the anticipated $2.26. This strong performance led to a 6% rise in Alphabet's shares during extended trading.

The demand for AI-powered infrastructure and data analytics services contributed to Google Cloud's 34% revenue growth, highlighting the unit's significant progress in closing the gap with formidable rivals like M

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