Alphabet Inc. cloud backlog reaches $514 billion amid AI investment

Alphabet Inc. is seeing significant momentum in its cloud computing division, with a backlog of customer commitments reaching $514 billion. The company is investing heavily in AI infrastructure, committing $811 billion to secure the necessary compute capacity to fulfill these contracts. While the search business remains a primary revenue driver with high operating margins, Google Cloud's revenue growth is accelerating.

Wall Street analysts maintain a bullish outlook on Alphabet stock. Analysts from Morgan Stanley, Wells Fargo, and Needham have issued ‘Buy’ ratings, with price targets ranging from $400 to $450. The average 12-month price target among 29 analysts is approximately $427, suggesting a potential upside of over 22% from recent trading levels.

Institutional activity also shows continued interest, with various wealth management firms and funds reporting increased positions in Alphabet shares during recent quarters.