Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks Making Waves on Wall Street. On December 16, BMO Capital raised its price target on the stock to $343.00 from $340.00 while maintaining an “Outperform” rating.
The firm remains confident in Google Cloud’s acceleration and long-term AI monetization following cloud-focused expert calls with former AWS employees.
One of the AWS employees holds direct visibility into $4.7B+ of annual cloud spending, the firm noted. Following these positive checks, it raised its growth estimates for Google Cloud to 39%/40% growth from previous projections of 38%.
BMO highlighted four key takeaways for the stock. These include expanding cloud commitments, AI agents supporting cloud commitments, Claude emerging as a preferred model among developers, and enterprise AI applications scaling in 2027.
“Key Takeaways: 1) Accelerating cloud commitments; 2) Agents supporting incremental cloud commitments; 3) Claude: The developer model of choice; 4) Enterprise AI apps to scale in 2027E. Reiterate Outperform and Top Pick; Raise Estimates and Target Price to $343 from $340.”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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