Alphabet Inc. (NASDAQ: GOOGL) has seen its price target raised to $375.00 by Guggenheim, with a “Buy” rating. Analysts are optimistic about the company’s AI-led monetization and cloud momentum through 2026, stating the stock has room to run higher. The firm believes the market may still be underestimating Google’s revenue potential.

Guggenheim has raised its 2026 and 2027 revenue and profit estimates for GOOGL, supported by upward revisions to Google Cloud segment revenue and further margin expansion. The firm sees a plausible bull case at Cloud indicating consensus under-appreciates run-rate revenue potential by ~ $40bn based on backlog growth. Analyst Michael Morris notes that scaled companies are best positioned for investor returns and growth next year.

Particularly for Google, three key developments support a bullish outlook: exceptional cloud backlog growth, YouTube’s dominance in streaming viewership, and Google Gemini’s emergence as a leading AI platform. The firm acknowledges the recent share appreciation but believes the market may still be underestimating Google’s revenue potential. While GOOGL has investment potential, there are other AI stocks with greater upside potential and less downside risk.

Read more at Yahoo Finance: Alphabet (GOOGL) Retains Buy Rating as Analysts Lift PT to $375 on Accelerating AI and Cloud Demand