The strong quarter and a boost in capital spending impressed analysts and solidified Alphabet's position as an AI leader.

Following a 38% jump in Alphabet shares in the third quarter, Wall Street will be paying close attention to the company's comments on its AI strategy.

Strong demand for ads and cloud services powered tech giant’s growth as it makes multibillion-dollar AI investment

Alphabet is planning a "significant increase" in spend next year as it continues to invest in AI infrastructure to meet the demand of its customer backlog.

The company earned an adjusted $3.10 per share on revenue of $102.35 billion.

The strong quarter and a boost in capital spending impressed analysts and solidified Alphabet's position as an AI leader.

With the largest cloud and internet companies reporting results this week, it's clear that spending on artificial intelligence is only increasing.