Alphabet's AI Cloud Surge Bolsters Nvidia After Earnings Beat and 5.5% Dip

Alphabet's Q1 earnings underscored enduring AI demand, with revenue up 22% to $109.9B, Google Cloud surging 63% to $20.0B, and RPO nearly doubling to $462B, driving shares +9% despite capex doubling to $35.7B and full-year guidance raised to $180-190B. This follows Nvidia's fiscal Q4 blockbuster ($68.1B revenue vs. $66.2B expected, $1.62 adjusted EPS, Q1 guide $78B vs. $72.6B, 75.2% margins), where shares fell 5.5% amid hyperscaler spending sustainability fears. Alphabet's results validate Nvidia's strength, signaling robust AI infrastructure demand despite mixed market reactions.