Alphabet briefly hit a $4 trillion market valuation on Monday, signaling renewed investor confidence in the Google parent as its sharpened focus on artificial intelligence eased concerns about its long-term strategy, reports Reuters.
Alphabet’s Class A shares rose as much as 1.7% to a record high of $334.04 before paring gains later in the session. The move followed growing evidence that the company’s AI investments are gaining traction across consumer devices and enterprise services.
In a major boost to sentiment, Alphabet said next-generation AI models for Apple will be built on Google’s Gemini platform under a multi-year agreement. Earlier this year, Reuters reported that Samsung Electronics plans to double the number of mobile devices using Gemini-powered AI in 2025.
Alphabet last week surpassed Apple in market capitalization for the first time since 2019, becoming the world’s second most valuable company. Its shares are up about 65% so far this year, outperforming peers in Wall Street’s “Magnificent Seven” group of mega-cap technology stocks.
The rally reflects a sharp turnaround in investor perception. Alphabet has quelled concerns that it lost an early AI advantage by transforming its once-overlooked cloud business into a key growth engine and by attracting a rare technology investment from Warren Buffett’s Berkshire Hathaway.
“The company has surprised us more than any other Magnificent Seven stock over the last 12 months,” said Phil Blancato, chief executive of Ladenburg Thalmann Asset Management. “Its innovation is pushing it beyond its traditional model, and that’s clearly showing up in earnings.”
The latest Gemini 3 model has drawn strong reviews, adding pressure on rivals such as OpenAI after its GPT-5 release disappointed some users. Google Cloud revenue jumped 34% in the third quarter, while its backlog of non-recognized sales contracts rose to $155 billion.
Alphabet has also accelerated growth by renting out its self-developed AI chips—once used exclusively in-house—to external customers. Highlighting rising demand, The Information reported that Meta Platforms is in talks to spend billions of dollars on Alphabet’s chips for use in its data centers starting in 2027.
Meanwhile, Alphabet’s core advertising business has remained resilient despite economic uncertainty and intense competition. The company is the fourth to reach the $4 trillion valuation milestone, after Nvidia, Microsoft and Apple, and has benefited from a U.S. court ruling last September that allowed it to retain control of the Chrome browser and Android mobile operating system.
Bd-pratidin English/ Jisan
