BMO Capital Raises Alphabet Target on Improving Google Cloud Growth

Core Viewpoint - BMO Capital Markets has raised its price target on Alphabet (GOOGL) to $343 from $340 while maintaining an Outperform rating, driven by positive insights from Google Cloud channel checks [1][2] Group 1: Price Target and Ratings - BMO Capital Markets increased its price target for Alphabet to $343 from $340 [1] - The firm maintains an Outperform rating for Alphabet, indicating strong confidence in its performance [1][2] Group 2: Google Cloud Insights - Positive channel checks included discussions with two former AWS employees, one of whom provided insights into over $4.7 billion of annual cloud spending [1] - BMO raised its Google Cloud growth estimates for Q4 2025 and Q1 2026 to 39% and 40%, respectively, up from previous forecasts of 38% for both periods [1] Group 3: Future Growth and AI Impact - Key takeaways highlighted accelerating cloud commitments and the role of AI agents in driving incremental cloud demand [2] - Claude is emerging as a preferred model among developers, indicating a shift in AI preferences [2] - Enterprise AI applications are expected to scale significantly by 2027, suggesting long-term growth potential for Google Cloud [2]