Alphabet Q3 2025: AI Winners and Losers

Alphabet (Google) Q3 2025: record $102.3B revenue, double-digit growth in Ads and Cloud, and capex hiked to $91-93B for AI/data centers. Shares jumped on the beat. What changed Revenue: $102.3B (+16% YoY). Net income +33%. Google Cloud: +34% YoY to ~$15.2B. Capex: raised again to $91–93B in 2025, focused on AI infrastructure and data centers. WinnersAI chips and semicap gear — read-through from Alphabet’s surging Cloud demand and multi-year AI capexWhy: Strong Cloud growth and a larger AI/data-center buildout mean more accelerators, memory, and fab tools. Names: NVIDIA ($NVDA), Advanced Micro Devices ($AMD), Micron ($MU), Applied Materials ($AMAT)Data center power/cooling and colocation REITs scaling capacity to meet AI workloadsWhy: Elevated hyperscaler capex typically tightens power/cooling supply and drives demand/pricing for power gear and interconnection space. Names: Vertiv ($VRT), Eaton ($ETN), Equinix ($EQIX), Digital Realty ($DLR)Digital ads ecosystem - positive read-through from double-digit ad growth at GoogleWhy: Reacceleration in ad spend at a major platform often signals stronger budgets and auctions across performance and brand channels. Names: The Trade Desk ($TTD), Roku ($ROKU), Meta Platforms ($META), Snap ($SNAP)LosersIndependent ad-tech supply-side platforms tougher comps if Google Ads takes more wallet shareWhy: When a mega-platform outperforms, smaller intermediaries can see share/pricing pressure and weaker take rates.Names: Magnite ($MGNI), PubMatic ($PUBM)Content publishers reliant on search referrals risk from AI features in searchWhy: Continued rollout of AI features in search results can reduce organic click-through to publisher sites over time. Names: The New York Times ($NYT), News Corp ($NWSA)On-prem legacy IT power/cooling vendors without AI exposure — spend tilts to hyperscale AIWhy: Hyperscaler-led AI capex can crowd out traditional on-prem refresh cycles where vendors lack AI data-center leverage. Names: Commvault ($CVLT), NetApp ($NTAP)#StockMarket #Trading #Investing #DayTrading #SwingTrading #GOOGL #Earnings #AI #Cloud #DataCenters #AdTech #Semiconductors

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