Alphabet (GOOGL) Stock: Analyst Boosts Price Target to $375 on Cloud Growth

TLDR

• Guggenheim analyst Michael Morris raised Alphabet’s price target from $330 to $375 while maintaining a Buy rating
• Google Cloud ended Q3 with a $155 billion backlog, showing 46% sequential growth driven by enterprise AI demand
• Analyst believes Wall Street underestimates Cloud revenue potential by roughly $40 billion based on backlog expansion
• YouTube maintains streaming leadership with improving monetization and Google Gemini shows fast-growing adoption metrics
• GOOGL stock has climbed 68% year-to-date and 13% over the past month

Guggenheim’s top-rated analyst Michael Morris just gave Alphabet shareholders another reason to smile. He bumped his price target to $375 from $330, keeping his Buy rating intact.

The stock has already been on a tear. Shares are up 68% year-to-date and gained 13% in the past month alone.

Alphabet Inc., GOOGL

Morris points to three main factors driving his optimism. Google Cloud is leading the charge with what he calls “exceptional” backlog growth. The cloud unit wrapped Q3 with a $155 billion backlog, jumping 46% from the previous quarter.

That backlog number matters more than most investors realize, according to Morris. He thinks the market is missing about $40 billion in potential Cloud revenue based on how fast that backlog is growing.

Enterprise customers are rushing to build AI capabilities. Google Cloud is catching that wave.

The analyst also likes what he sees in YouTube. The video platform keeps its crown as the streaming viewership leader. More importantly, it’s getting better at turning those views into cash.

AI Push Powers Multiple Revenue Streams

Google’s Gemini AI platform rounds out Morris’s bullish thesis. The AI model is picking up users quickly and establishing itself as a serious player in the space.

Reports that Meta might use Google’s Tensor Processing Units in its data centers added fuel to the rally. That kind of hardware deal could mean serious revenue down the line.

Morris raised his 2026 and 2027 projections for both revenue and profits. Most of those increases came from higher expectations for Cloud segment revenue. He also sees margins continuing to expand.

The analyst believes the biggest tech companies are set up to deliver “outsized” growth heading into 2026. He expects Alphabet to beat Street estimates.

Wall Street Weighs In

The broader analyst community shares some of Morris’s enthusiasm. Alphabet carries a Strong Buy consensus rating based on 31 Buy recommendations and seven Holds.

However, the average price target sits at $314.71. That suggests most analysts see shares as fairly valued at current levels. Morris’s $375 target stands well above that consensus.

TD Cowen maintained its Buy rating with a $335 target after Google launched Gemini 3. The new large language model now works across multiple company products.

Alphabet’s AI investments are starting to show up in the numbers. Cloud revenue growth accelerated in recent quarters as enterprise customers adopted AI tools.

The company recently launched Nano Banana Pro, an upgraded image generation model. It offers better text rendering and more creative controls than earlier versions.

Google Cloud’s backlog grew to $155 billion in Q3, marking 46% sequential growth driven by enterprise AI demand.

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