Google Cloud revenue rose 103% to $30.7 billion in Q3, and Alphabet said TPU system sales were a meaningful contributor, while cloud operating income nearly tripled to $11.1 billion and margin reached 36.2% from 23.7%. Search & other grew 12%, down from 17%, and came in about $1.5 billion short of estimates. Investor Dave Blundin, in his own estimate, ranks TPUs second only to NVIDIA in total compute manufactured, and The Information reported OpenAI plans to buy Google's chips, though neither company has confirmed. Alphabet's free cash flow was negative $9.1 billion on $51.4 billion of capex, and the stock trades at 20x forward earnings versus a five-year average of 23x. Google Cloud's backlog reached $561 billion, and Scotiabank estimates about 22% of it comes from Anthropic.
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GOOGLsemiconductorscloud computingartificial intelligenceearnings
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Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $3.5T |
| Close on 11/02/2026 | 278.99 |
| Change that session | -0.30% |
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/02/2026 | 202.06 |
| Change that session | -1.26% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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