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Technology Stocks : Artificial Intelligence, Robotics, Chat bots - ChatGPT
NVDA 200.03+0.8%9:57 AM EST

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From: Frank Sully7/23/2025 8:40:21 PM
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Alphabet beats on top & bottom lines

a second-quarter earnings report that again beat expectations easily, with another double-digit gain for revenues -- and featured a sharp increase to its spending forecast, as artificial intelligence continues its outsize effect on every part of Alphabet's business.

Revenues grew 14% year-over-year to hit $96.43B, well ahead of estimates for $94B (an 11% increase) -- an acceleration after last quarter's revenue grew 12%. Q2 revenues grew 13% when counted in constant currency. Cloud revenues, now taking primary focus among Alphabet's growth areas, rose 32%.

Operating income also grew 14%, to $31.27B, while operating margin held at 32%. A $2.7B boost from "other income" lifted net income to $28.2B, another easy beat.

The company noted, though, that it now sees full-year capital expenditures at $85B vs. a previous forecast for $75B. A Bloomberg consensus for full-year capex expected $73.3B.

CEO Sundar Pichai pointed to the AI impact: "We are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum."

"Search delivered double-digit revenue growth, and our new features, like AI Overviews and AIMode, are performing well. We continue to see strong performance in YouTube as well as subscriptions offerings. And Cloud had strong growth in revenues, backlog and profitability. Its annual revenue run-rate is now more than $50 billion," Pichai added.
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