[JPMorgan: Cloud Business Growth of 82% Proves AI Spending is Paying Off, Buy on Dips] Deep Tide TechFlow reports that on July 24, according to Tide Research, Google's Q2 earnings report confirms that AI monetization is accelerating. Cloud business revenue grew 82% year-over-year to $24.77 billion, with continuous acceleration. TPU revenue exceeded $1 billion for the first time, and backlog orders increased by $5.2 billion quarter-over-quarter to $514 billion, indicating that demand for AI computing power is far from saturated. Search business revenue grew 17% year-over-year, and monthly active users of AI models surpassed 1 billion. Capital expenditures for 2026 have been raised to $195-205 billion, which JPMorgan believes reflects a supply-demand imbalance in computing power rather than cost pressures, with further growth expected in 2027. The overweight rating is maintained, with a target price of $420, representing approximately 34% upside from the current stock price. Margin pressures stem from transitional factors such as third-party capacity bridging and TPU hardware sales, rather than structural deterioration. JPMorgan believes AI investments have begun to yield returns and recommends buying on dips.