Alphabet (GOOGL) stock has rallied 13% over the past month and is up 68% year-to-date. The rally in GOOGL stock is driven by optimism for the Google Cloud unit, which is gaining from artificial intelligence (AI)-led tailwinds, and the release of the Gemini 3 AI model. Also, reports about Meta Platforms (META) considering using Google’s Tensor Processing Units (TPUs) in its data centers boosted investor sentiment. Top Guggenheim analyst Michael Morris sees further upside in GOOGL stock and raised his price target to $375 from $330, while reiterating a Buy rating. Morris noted several positives, including momentum in Google Cloud.
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Guggenheim Analyst Sees Further Upside in GOOGL Stock
Heading into 2026, Morris continues to believe that the largest companies in Guggenheim’s coverage are well-positioned to deliver “outsized” growth and investor returns. He expects Alphabet to beat the Street’s consensus forecasts and the stock to see further multiple expansion, as investors anticipate that AI-led changes in the business, advertising, and consumer marketplaces will create growth opportunities.
Morris cited three key reasons for his increased optimism. First, he noted the “exceptional” growth in Google Cloud backlog, driven by rising enterprise AI demand. Notably, Google Cloud ended the third quarter with a strong backlog of $155 billion, reflecting 46% sequential growth. Second, the 5-star analyst highlighted YouTube’s continued leadership in streaming viewership with improving monetization. Finally, Morris noted Google Gemini’s progress as a leading AI platform with fast-growing adoption metrics.
While Morris pointed out the recent jump in GOOGL stock based on these positives, he sees “a plausible bull case at Cloud that would indicate consensus underappreciates run-rate revenue potential by ~ $40bn based on backlog growth.”
Based on his optimism, Morris raised his 2026 and 2027 revenue and profit projections for Alphabet, mainly to reflect higher expectations for Google Cloud segment revenue and a further increase in margins.
Is GOOGL Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Strong Buy consensus rating on Alphabet stock based on 31 Buys and seven Hold recommendations. The average GOOGL stock price target of $314.71 indicates that shares are fully priced at current levels.
