1 Jaw-Dropping Metric That Makes Alphabet Stock a No-Brainer Buy.

For Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), I think there's one metric that defines the entire stock: Its cloud computing growth rate. In Q2, Google Cloud revenues grew at an incredible 82% pace. That's about double the pace its cloud computing peers are growing at.

I think this showcases that Alphabet's platform is rising as one of the best available, and if it keeps this growth up, it could push the stock to new heights. I think that adds up to make Alphabet stock a great buy, particularly now, while it's still down by more than 10% from its all-time high.

Image source: Getty Images.

Google Cloud's growth rate isn't done accelerating

What makes Google Cloud's Q2 growth rate of 82% so impressive is how quickly it has accelerated. In Q1, it was 63%. In Q4 2025, it was 48%, and in Q3 2025, it was 34%. That's some rapid acceleration, and I think there's a pretty easy explanation for it.

Alphabet has been spending big on data center infrastructure over the past few years, but those outlays really ramped up in 2025. As the resulting computing capacity came online throughout the year and into 2026, it allowed Alphabet to convert more of its cloud backlog into growth. Last month, Alphabet increased its capital expenditure guidance range for 2026 by another $15 billion to $195 billion to $205 billion, around double 2025's levels.

GOOG Capital Expenditures (TTM) data by YCharts.

This will extend its rapid growth rate well into 2027, but I think that trend could last for several more years beyond that. During Q1's conference call, Alphabet's management team informed investors that 2027's capital expenditures would be "significantly" higher than 2026's. That showcases that the company perceives that there's still massive unmet demand, and that will allow Google Cloud's revenue growth rate to stay elevated.

Another catalyst that's coming later this year and into 2027 is the sales of its custom AI chips, Tensor Processing Units (TPUs). TPUs are incredible computing units and can outperform GPUs on a cost basis as long as the workload is properly configured and within the narrow range of workloads they are designed for. They were designed in-house by Google in collaboration with Broadcom (NASDAQ: AVGO), and adding sales to external customers to the results from its already booming computing unit will add fuel to the fire.

Over the next few quarters, I wouldn't be surprised to see this business unit post triple-digit percentage growth rates, which will boost Alphabet's business overall. This makes Alphabet a great stock to consider buying now, as it's just beginning to benefit from one of the greatest growth catalysts it has ever experienced.

Keithen Drury has positions in Alphabet and Broadcom. The Motley Fool has positions in and recommends Alphabet and Broadcom. The Motley Fool has a disclosure policy.