Alphabet (GOOGL) is one of the most innovative companies in the modern technological age. Over the last few years, the company has evolved from primarily a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare and others. Alphabet shares have outperformed the industry in a year. GOOGL is benefiting from accelerated growth across AI infrastructure, Google Cloud, and Search. Google Cloud ended the third quarter of 2025 with $155 billion in backlog, up 46% sequentially. The number of new Google Cloud Platform customers increased by roughly 34% year over year, and 70% of Google Cloud customers now use Alphabet’s AI products. In third-quarter 2025, revenues from products built on Alphabet’s generative AI models (Gemini, Imagen, Veo, Chirp and Lyria) grew more than 200% year-over-year, reflecting accelerating adoption. Search is benefiting from AI Overviews and AI Mode that has driven growth in overall queries. YouTube is benefiting from the growing demand for shorts. Management execution has been good in recent times, which has helped Alphabet to build solid cash and short-term investment balance.
Ciena Corporation (CIEN) is a leading provider of optical networking equipment, software and services.Ciena’s fiscal fourth-quarter reflected year-over-year 20% top-line gains, 69.5% EPS growth and a record $5 million order backlog, driven by accelerating AI-led demand from cloud and service provider customers. Driven by strong cloud and service provider momentum, Ciena gained 2 points of optical market share year to date and expects further gains in 2026. Networking Platforms revenue rose 22% to $1.05 billion, driven by 19% Optical growth on a 72% RLS surge and 49% growth in Routing and Switching from DCOM demand. Ciena lifted its fiscal 2026 revenue outlook to $5.7-$6.1 billion, nearly 24% growth at the midpoint, up from the prior 17%, on strong demand from cloud, DCI, and AI infrastructure.
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