<div id="readability-page-1"><div><div><p>With the cloud growth engine quietly roaring and regulatory threats receding, <strong>Alphabet Inc</strong>'s <span>GOOGL</span> <span>GOOG</span> identity as a search giant via <strong>Google</strong>, is being rewritten. Its cloud narrative is gaining strength – one that has <strong>Microsoft Corp</strong> <span>MSFT</span> watching closely as the field reshapes.</p><ul> <li>Track GOOG stock here.</li> </ul><h2>Cloud Cadence Shifts The Narrative</h2><p>Alphabet's Google Cloud is growing at a brisk pace – outpacing Microsoft's Azure in recent quarters with a 28% CAGR vs. 22%, suggesting that Google is increasingly considered a serious cloud contender. Investors now recognize that Cloud is not just an add-on but a strategic profit lever that can drive multiple re-ratings.</p><p>Meanwhile, Microsoft still enjoys scale and AI partnerships, but the gap is narrowing. Alphabet's renewed focus on infrastructure efficiency—highlighted by investments in custom silicon like its Tensor Processing Units (TPUs) and advanced datacenter cooling—further supports long-term margin expansion. As hyperscalers face rising energy costs, Alphabet's early moves in energy-efficient chips and green datacenter design are expected to become significant differentiators.</p><p><strong>Read Also: OpenAI’s ChatGPT Ironically Helped Google Avoid DOJ Breakup As Judge Cites Generative AI Competition In Landmark Antitrust Ruling</strong></p><h2>Regulatory Relief Frees Alphabet's Hand</h2><p>The recent court ruling in Alphabet's antitrust case spared it from drastic remedies like divesting Chrome or Android—selling Google's browser or OS—but still requires limited data sharing and curbs on exclusive agreements. </p><p>With regulatory overhang easing, Alphabet can now better lean into Cloud investments and margin expansion without compromise. Alphabet's $100-billion-plus buyback program and consistent free cash flow generation add another layer of appeal for institutional investors. </p><p>If cloud growth sustains its trajectory and AI monetization accelerates, Alphabet's valuation gap with Microsoft could narrow considerably over the next 18 months, positioning it as a dual-threat leader in both advertising and enterprise services. It could bring its growth narrative closer to Microsoft's status as a premium Cloud-AI stock.</p><p>For now, Alphabet is shaking off its &#34;search-only&#34; label – and Microsoft may soon find its cloud crown under real pressure.</p><ul> <li><strong>Broadcom Vs. Nvidia: The AI Chip War You’re Not Watching</strong></li> </ul><p><em>Photo: Here Now / Shutterstock.com</em></p></div></div></div>

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<p>Alphabet Inc. is redefining its identity beyond being a search giant, with its Google Cloud growing at a 28% CAGR, surpassing Microsoft's Azure at 22%. This shift, coupled with regulatory relief from antitrust issues, allows Alphabet to focus on cloud investments and margin expansion. Its $100 billion buyback program and strong cash flow make it appealing to investors. As Alphabet's cloud growth continues and AI monetization accelerates, it could narrow the valuation gap with Microsoft, positioning itself as a leader in both advertising and enterprise services.</p>

- Alphabet Inc's Google Cloud is experiencing rapid growth, outpacing Microsoft's Azure with a 28% CAGR compared to 22%.  
- Recent regulatory relief allows Alphabet to focus on cloud investments and margin expansion, enhancing its appeal to institutional investors.  
- If this growth continues, Alphabet could significantly narrow its valuation gap with Microsoft, positioning itself as a leader in both advertising and enterprise services.  

Google's No Longer Just Search - And Microsoft's Not Sleeping Well