Alphabet Reports Strong Q2 Earnings
Alphabet (NASDAQ: GOOG, GOOGL) announced impressive second-quarter results on July 22, with Google Cloud sales reaching $24.8 billion, a notable 82% increase compared to the previous year. This growth surpassed the 63% year-over-year increase recorded in the previous quarter, contributing to a total cloud backlog of $514 billion.
In a significant development, Alphabet’s CEO Sundar Pichai revealed during the earnings call that the company has started generating revenue from selling its custom Tesnor Processing Units (TPUs) to external customers, marking the beginning of a new revenue stream. While this segment currently comprises a small portion of Alphabet’s revenue, high demand could enhance its significance over time, potentially placing Alphabet in direct competition with Nvidia (NASDAQ: NVDA). Additionally, Alphabet’s partnership with Broadcom (NASDAQ: AVGO) on TPUs extends through 2031, further aligning interests between the two companies.
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