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Here’s what will take center stage as Alphabet gears up for earnings

Alphabet needs to prove that its massive investments in AI are driving revenue growth. The biggest payoff could be in the cloud.

Google recently expanded its partnership with Anthropic for several additional gigawatts of custom TPU capacity.

Alphabet’s stock has been a popular artificial-intelligence pick, and the company’s first-quarter earnings report on Wednesday will be a test to see if that winning reputation is warranted.

Shares of Alphabet (GOOGL) (GOOG) have risen 119% year to date, making them the top performer among the “Magnificent Seven” group of tech stocks.

“We expect another strong beat as the Street continues to underestimate what Google Cloud, AI-powered search and YouTube can grow into,” Wedbush analyst Dan Ives wrote in a note last week.