When it comes to technology stocks, much of 2023 has been dominated by chatter around artificial intelligence (AI). And when it comes to AI, one of the most scrutinized companies is (NASDAQ: GOOG) (NASDAQ: GOOGL), which made some sizable investments in the technology earlier this year.

When the company released first-quarter results back in April, some investors were left scratching their heads. Alphabet's advertising segment, its largest revenue source, declined marginally year over year, with video-sharing platform YouTube shrinking roughly 3%. Naturally, this enhanced lingering concerns over threats from other video- and advertising-heavy networks, like TikTok. On a more positive note, Alphabet's cloud segment grew 28% annually and posted its first profitable quarter.

Given the mixed results from Q1, investors could argue that AI hype has been a big driver of Alphabet stock's 44% gain this year. Investor expectations heading into Q2 earnings were sky-high. And Alphabet did not disappoint. Let's digest the report and see whether the stock deserves a spot in your portfolio.

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Source Fool.com