Home Earnings Analysis Communication Services Summary Alphabet reported $108.6B in 'assets not yet in service' vs. $78.6B at the end of 2025. Essentially, that $108.6B is a pool of AI infrastructure that has not yet fully started flowing through depreciation expense. In my view, this means the bull case cannot claim depreciation risk is solved, as much of the AI infrastructure has not hit earnings yet. That said, being too early is the same thing as being wrong. Current depreciation remains manageable, rising $2B yoy while revenue grew $19.66B and operating income increased $9.09B. For now, the revenue and margin growth in the Cloud segment are driving the story. I therefore upgrade to a Buy until I see strong signs of depreciation catching up with earnings growth. Thomas Barwick/DigitalVision via Getty Images Over the last few days, I have had to sit with a fairly uncomfortable conclusion: I was too early with my downgrade on Alphabet Inc.…