Why BMO Sees Alphabet (GOOGL) Benefiting From Expanding AI Cloud Commitments

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 risk and potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.