Alphabet stock surged 4% following a strong third-quarter report, beating expectations and increasing capital expenditures to $91-$93 billion for AI infrastructure, with a $155 billion backlog for Google Cloud.

Analysts praised Alphabet’s $3.10 adj. EPS and revenue of $102.35 billion, exceeding expectations of $2.33 EPS and $99.89 billion revenue, solidifying its AI leadership position.

Goldman Sachs raised its price target to $330, impressed by Alphabet’s strong quarter and AI initiatives, with JPMorgan also raising its price target to $340.

Google’s search arm revenue reached $56.56 billion, up 15% year-over-year, calming fears of AI search transition risks, flipping the narrative to more opportunity than threat.

Read more at CNBC: Alphabet stock jumps 4% after strong results, boosting AI spend