Alphabet reaches $4 trillion market cap as renewed AI strategy boosts investor confidence

Alphabet Reaches $4 Trillion Market Cap Amid AI Surge

On Monday, Alphabet, the parent company of Google, achieved a market valuation of $4 trillion. This milestone comes as the company’s intensified commitment to artificial intelligence reassures investors about its direction and reestablishes its leadership in the competitive AI landscape.

By Wednesday, Alphabet had overtaken Apple in market value for the first time since 2019, making it the world’s second most valuable publicly traded company.

This achievement reflects a dramatic shift in investor confidence, with Alphabet’s shares soaring approximately 65% in 2025—outpacing other members of Wall Street’s so-called Magnificent Seven.

So far this year, the stock has climbed an additional 6%, with a recent increase of 1.1%.

Alphabet’s resurgence was driven by its ability to address concerns about losing its early AI lead. The company transformed its previously overlooked cloud division into a major growth driver and attracted a rare technology investment from Warren Buffett’s Berkshire Hathaway.

The introduction of the Gemini 3 AI model has received positive feedback, increasing competitive pressure on OpenAI, especially after some users found GPT-5 less impressive.

According to a Reuters report, Samsung Electronics intends to double the number of its mobile devices featuring AI capabilities powered by Google’s Gemini this year.

Google Cloud’s revenue surged by 34% in the third quarter, with its backlog of unrecognized sales contracts reaching $155 billion.

Additionally, Google’s decision to offer its proprietary AI chips—previously reserved for internal projects—to external clients has accelerated the growth of its cloud business.

Reflecting the growing demand, The Information reported that Meta Platforms is negotiating to spend billions on Alphabet’s chips for its data centers, beginning in 2027.

Despite economic headwinds and fierce competition, Alphabet’s primary revenue source—its advertising division—has remained resilient.

Alphabet now joins Nvidia, Microsoft, and Apple as the fourth company to surpass the $4 trillion valuation mark.

The company’s stock also gained momentum after a U.S. judge ruled in September against breaking up Alphabet, allowing it to maintain control over its Chrome browser and Android operating system.

Contributors: Zaheer Kachwala, Shashwat Chauhan, and Johann M Cherian in Bengaluru; Edited by Sriraj Kalluvila