2026-07-22XQuote

Source item

$GOOGL now has 950M monthly Gemini users and processes 22B API tokens/min. Compared to 750M back in February. Absurd growth adding 200 million more users in a few months. Kinda explains why they ran out of compute, then cut allocations to $META and others. Very unlikely AI capex will slow down given.

Quoted context

These are the quoted author’s words.

$GOOGL reported earnings today: EPS: $9.11 actual vs $2.91 expected - retail reactions to EPS blowout is kinda just accounting noise, since $SPCX, Anthropic, and others were likely large contributors. Revenue: $119.7B actual vs. $116.98B expected Google Cloud Revenue: $24.77B +82% Y/Y, vs. 63-65% expected ($22.2-$22.6B) - this is a very large beat and most material part so far. Cloud Operating Income: ~$8.81B, implying 35.6% margin vs. 32.9% Q1. Capex: $44.92B vs ~$44.15B (basically in line). So initial read through is Google Cloud accelerating growth with expanding margins is genuinely bullish for AI demand. Their former $180-$190B capex guidance is already extremely large, and as long as we get around these numbers in the earnings call + forward projections... Should be good to go for $LITE and the other optics/networking trade. (eg. last earnings, they said DC and networking would be ~40% of capex spend). Hyperscaler earnings transcripts are probably the most important thing to pay attention to with the AI capex trade. And that should be in 3 minutes.
aleabitoreddit ↗