Alphabet's stock is experiencing a significant surge as investor confidence grows in its artificial intelligence and cloud computing businesses. This optimism is fueled by strong third-quarter results showing a 79% explosion in Google Cloud's backlog, indicating a sharp increase in enterprise AI demand. The company's AI monetization is accelerating, with Google Cloud's revenue growing 34% year-over-year. Adding to the momentum are reports that Meta Platforms is considering a multi-billion dollar deal to use Google's Tensor Processing Units (TPUs) in its data centers starting in 2027. This development positions Alphabet as a serious challenger in the high-margin AI hardware market, a space currently dominated by Nvidia. The news has been met with positive market reaction, contributing to the stock's advance and reinforcing analyst confidence in the company's long-term growth strategy.