Alphabet Inc. Surges Amid AI-Powered Search Engine Transformation

Alphabet Inc., Google's parent company, has reported another quarter of solid growth, driven by an AI-enhanced search engine. Despite concerns from online publishers about reduced traffic, the company's revenue rose by 14% year-over-year to USD 84.74 billion, with profits up by 29%. Stock prices have surged 30% this year.

Alphabet Inc., Google's corporate parent, has recorded another quarter of consistent growth propelled by an AI-driven shift in its widely-used search engine. The second-quarter financial report released on Tuesday shows that advertisers continue to flock to Google following the introduction of an AI feature that offers conversational responses to queries. This shift has caused some concern among online publishers, who fear a decline in their website traffic. However, Alphabet continues to thrive, bolstered by the success of its AI initiatives.

For the April-June period, Alphabet's revenue surged by 14 per cent compared to the same time last year, reaching USD 84.74 billion. The company based in Mountain View, California, earned USD 23.62 billion in profit, translating to USD 1.89 per share — a 29 per cent increase. This marks the fourth consecutive quarter where Alphabet's year-over-year revenue growth exceeded 10 per cent, although the pace slowed slightly from the January-March period.

These financial results exceeded analyst expectations according to FactSet Research, prompting a slight rise in Alphabet's stock price in extended trading. The stock has already climbed 30 per cent this year, driven by the potential revenue from AI advancements, which Google explores through its DeepMind division and Gemini technology.

(With inputs from agencies.)