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(NASDAQ: GOOGL) third-quarter earnings report was a revelation. The parent company of Google showed why it's one of the best artificial intelligence (AI) stocks as it recorded a $100 billion quarter in revenue. And analysts took notice.Two of them updated their ratings on Alphabet stock on Oct. 30, a day after the company's earnings release. Scotiabank set its price target at $336, and JPMorgan set its target at $340.The twin price targets represent a 20% jump for Alphabet stock from its price at the time of this writing.Will it hit that price target? I think it will, sooner rather than later. But one of the biggest drivers that will help it get there will be the continued growth of a unit that's playing second fiddle right now to the company's advertising business.Let's look at why cloud computing and Google Cloud are the quiet powerhouses behind the next leg of Alphabet's growth.Image source: Alphabet.Data centers are growing by leaps and bounds these days as hyperscalers are pouring hundreds of millions of dollars into ramping up computing power, storage, and networking resources. The global data-center market was valued in 2024 at $347.6 billion and is projected to have a compound annual growth rate of 11.2% through 2030, reaching $652 billion, according to Grand View Research.That's where Google Cloud competes. It's one of three major hyperscalers, along with Amazon Web Services (AWS) and Microsoft Azure. AWS is the top company, with 29% market share, and Azure has 20%. Google Cloud is in third place with 13%, followed by Alibaba, Oracle, Salesforce, and IBM Cloud.That positioning gives Google Cloud plenty of opportunity to grow its market share. And even if it holds steady in the 13% range, the fast-growing data center space will mean plenty of profits for Alphabet.In the third quarter, Google Cloud accounted for $15.15 billion in revenue, up 33% from the previous year. Operating income from the segment increased from $1.95 billion a year ago to $3.59 billion in the current quarter.Management said Google Cloud ended the quarter with a $155 billion backlog, up 46% year over year, and it signed more deals for the segment valued at more than $1 billion in 2025 than it had in the previous two years.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,860.00 +3.25 (+0.05%)Dow Futures47,472.00 +10.00 (+0.02%)Nasdaq Futures25,732.00 +17.50 (+0.07%)Russell 2000 Futures2,465.80 +1.50 (+0.06%)VIX17.60 -1.48 (-7.76%)Gold4,138.70 +16.70 (+0.41%)PortfolioSign in to access your portfolioSign inTop gainersCOGT Cogent Biosciences, Inc. 32.46 +17.64 (+119.03%)NVTS Navitas Semiconductor Corporation 9.60 +1.76 (+22.45%)OPEN Opendoor Technologies Inc. 7.97 +1.41 (+21.49%)MLYS Mineralys Therapeutics, Inc. 44.50 +6.48 (+17.04%)TSEM Tower Semiconductor Ltd. 98.10 +14.03 (+16.69%)Top losersSGRY Surgery Partners, Inc. 16.04 -5.47 (-25.42%)BTDR Bitdeer Technologies Group 17.65 -4.34 (-19.74%)OSCR Oscar Health, Inc. 14.61 -3.11 (-17.55%)MTSR Metsera, Inc. 70.87 -12.31 (-14.80%)MNDY monday.com Ltd. 166.21 -23.38 (-12.33%)Most activeOPEN Opendoor Technologies Inc. 7.97 +1.41 (+21.49%)PLUG Plug Power Inc. 2.5600 -0.0900 (-3.40%)NVDA NVIDIA Corporation 199.05 +10.90 (+5.79%)PFE Pfizer Inc. 24.39 -0.04 (-0.16%)ONDS Ondas Holdings Inc. 5.88 +0.07 (+1.20%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersCRWV CoreWeave, Inc. 105.61 +1.60 (+1.54%)BBAI BigBear.ai Holdings, Inc. 5.71 +0.03 (+0.53%)RKLB Rocket Lab Corporation 51.90 +0.26 (+0.50%)AI C3.ai, Inc. 16.08 +0.56 (+3.61%)RGTI Rigetti Computing, Inc. 33.08 -0.69 (-2.04%)Top economic events