Alphabet, Google's parent company, is set to release its third-quarter earnings after market close on Wednesday, ET. Analysts widely anticipate a 25% year-over-year increase in revenue, marking its fastest growth since 2021. However, escalating Wall Street concerns over the costs of artificial intelligence (AI) development have led to Alphabet's stock declining by approximately 7% in October.

Specifically, analysts project Alphabet's Q3 capital expenditures to surge by 130% year-over-year to $55.2 billion, with free cash flow expected to be negative $2.27 billion. Cloud revenue is forecast to grow by 90% to $28.7 billion, as Google actively expands its AI offerings with the Gemini model and custom TPUs (Tensor Processing Units), aiming to capture market share from competitors like Amazon AWS and Microsoft Azure.