Alphabet (GOOG, GOOGL) is expected to report quarterly results after the bell on Tuesday, ushering in a week of big gains for U.S. tech giants after a shaky run on Wall Street.

The company is expected to provide updates on its efforts to turn massive AI investments into new revenue streams and its position in the massive digital advertising market.

Here's what Wall Street expects for some of Alphabet's key metrics in the company's fiscal third quarter, according to Bloomberg data:

• revenue: $86.44 billion expected ($76.69 billion in Q3 2023)

• Adjusted earnings per share: $1.83 expected ($1.55 in Q3 2023)

• Cloud revenue: $10.79 billion expected ($8.41 billion in Q3 2023)

• Advertising revenue: $65.5 billion expected ($59.65 billion in Q3 2023)

Last year, Google was widely seen as playing catch-up to Microsoft (MSFT), which was among the first companies in the tech world to capitalize on the cultural buzz around consumer AI chatbots. But in subsequent quarters, Google has tried to expand its own leadership position. Earlier this month, Alphabet CEO Sundar Pichai sent a note to employees outlining another internal restructuring and shifting staff to prioritize AI development.

And last week, Information reported that the company is developing AI-driven technology that takes over a web browser to complete tasks like purchasing products or booking a flight. According to the report, Google could preview the technology as early as December.

Analysts will seek to examine the company's progress in AI integration to gain a better perspective on the costs of developing sophisticated AI technologies. Capital spending is expected to exceed $12 billion in the quarter.

Industry observers also expect Google's cloud business to expand, which is becoming increasingly important to investors because of its use in developing artificial intelligence. Wall Street expects Google Cloud revenue to be nearly $11 billion, up about 28% from the same period last year.

“We believe GOOGL has the best cloud infrastructure for the AI ​​era and should therefore allow it to better manage its cost profile compared to other cloud providers while benefiting from a variety of new revenue opportunities,” Angelo said Zino, equity analyst at CFRA Research, in a note.

Alphabet's report comes at a turbulent moment for the company.

Earlier this month, the U.S. Department of Justice said in a court filing that it may recommend breaking up the company to boost competition in the search engine market. The DOJ is expected to submit a more detailed document outlining the proposed remedies by November 20th.

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