Alphabet Heads into Earnings with Elevated Expectations After AI-Driven Surge

Alphabet Inc faces a steep challenge to meet high investor hopes in its upcoming Q1 earnings, fueled by recent AI advancements and chip business growth that lifted shares to record highs. Analysts project $107.02 billion in revenue, up about 19% year-over-year, alongside EPS of $2.73, slightly down $0.03, with scrutiny on advertising trends, Google Cloud expansion, and Gemini AI demand. Shares, up 11% year-to-date against a 4% S&P 500 gain, ended little changed Tuesday amid AI sector weakness from an OpenAI miss. Peers Nvidia and Amazon have risen 14% and 13% YTD respectively. The Wednesday report could sustain the AI rally or prompt a pullback.