-
In recent months, Alphabet’s Google has accelerated its AI and cloud push with record Q3 revenue of US$102.34 billion, strong Google Cloud growth, and the launch of its advanced Gemini 3 model alongside lower-cost Gemini 3 Flash.
-
At the same time, Google has been locking in long-term clean power deals in Malaysia, backing large-scale carbon removal projects, and advancing ventures like Waymo and quantum computing, underscoring how its AI ambitions are tied to energy, sustainability, and a widening portfolio beyond core advertising.
-
We’ll now examine how this combination of Gemini-driven AI momentum and long-term renewable power commitments affects Alphabet’s investment narrative.
We’ve found 13 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
To own Alphabet, you have to believe its AI heavyweights Gemini and Google Cloud can more than offset rising capital spending and its reliance on ad dollars. The latest clean energy and carbon removal deals help de risk the power needs behind that AI build out, but they do not change the near term swing factor, which remains how quickly AI features in Search and Cloud translate into higher revenue versus mounting infrastructure costs.
The 21 year renewable power agreement with TotalEnergies in Malaysia, alongside the separate 30 megawatt solar deal in Kedah, is directly tied to Alphabet’s AI and cloud capacity expansion in Asia. These contracts matter because they underpin long lived data center investments that support Google Cloud’s AI backlog and Gemini adoption, both central to the current growth catalyst, while reinforcing that AI driven capex will stay elevated for years.
Yet even with AI momentum, investors should be aware that rising capex could squeeze margins if revenue growth slows…
Read the full narrative on Alphabet (it’s free!)
Alphabet’s narrative projects $512.6 billion revenue and $148.4 billion earnings by 2028. This requires 11.3% yearly revenue growth and roughly a $32.8 billion earnings increase from $115.6 billion today.
Uncover how Alphabet’s forecasts yield a $323.70 fair value, a 9% upside to its current price.
Across 191 fair value estimates from the Simply Wall St Community, views on Alphabet range widely from US$171 to US$340 per share. When you weigh that spread against Alphabet’s heavy AI capex plans and margin pressure risk, it is worth comparing several of those viewpoints before deciding how its growth story fits into your portfolio.
