BMO Capital Boosts Google Cloud (GOOG) Outlook as Enterprise AI Adoption Hits Rapid Acceleration

Alphabet Inc. (NASDAQ:GOOG) is one of the best growth stocks to buy in 2026. On December 16, BMO Capital raised the firm’s price target on Alphabet to $343 from $340, while maintaining an Outperform rating on the shares. BMO is leaning into a more bullish outlook for Google Cloud, citing Cloud Expert calls that suggest a rapid acceleration in enterprise AI adoption. Reflecting this momentum, BMO Capital adjusted its Google Cloud growth targets upward for the coming quarters, peaking at 40% in the first quarter of the next year.

On the same day, Papua New Guinea confirmed that Google had been selected to construct three new undersea fiber-optic cables to modernize the nation’s digital infrastructure. The $120 million project is being fully funded by the Australian government under the provisions of the Pukpuk Treaty, a landmark mutual defense agreement signed in October 2025. This initiative, officially known as the Pukpuk Connectivity Initiative, aims to link PNG’s northern and southern regions to create a high-capacity, resilient digital backbone for the Pacific nation.

Earlier on December 11, Piper Sandler increased its price target for the company to $365 from $330 with an Overweight rating. Despite a premium valuation, analysts remain bullish due to the significant revenue contributions from Google’s AI-enhanced advertising suite.

A day before, on December 15, RBC Capital analyst Brad Erickson maintained a Buy rating on Alphabet with a price target of $315.

Alphabet Inc. (NASDAQ:GOOG) offers various products and platforms in the US, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments.

While we acknowledge the potential of GOOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.