Alphabet shares rose more than 3% in early trading on Thursday as the Google parent's earnings underscored a key message to investors: AI spending is climbing, but so are the returns.

Some pundits are underplaying the big picture when it comes to shares of Alphabet.

Google parent Alphabet plans to spend $10 billion more in capital expenditures this year than previously anticipated as the company works to meet surging demand for Google Cloud.

Wall Street inched to more records on Thursday as gains for Alphabet and artificial intelligence stocks helped make up for Tesla's steep tumble.

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AI upstarts were supposed to lay siege to Google’s search-engine dominance. So far, the defense is winning, writes Asa Fitch, following second-quarter results from parent company Alphabet. A: Google’s

Alphabet's undervaluation, strong fundamentals and growth in Google Cloud and AI offer long-term upside. Read here for more on GOOG stock.

The company increased that figure on Wednesday to $85 billion, saying it was raising it due to “strong and growing demand for our Cloud products and services.” The company expects to further increase capital expenditures in 2026, Alphabet finance chief Anat Ashkenazi said on an earnings call.

Asian shares are lower after Wall Street inched to more records as gains for Alphabet and artificial-intelligence stocks offset a steep tumble for EV-maker Tesla

Alphabet , faced with unprecedented threats from AI rivals, will be keen to assure investors this week that the company's own spending on the technology is helping it dig a deeper moat around its search and advertising businesses.