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Alphabet Inc, the parent company of search engine Google, briefly recorded a market capitalization of $4 trillion during Monday’s trading. This milestone reflects the company's strong return to the forefront of global competition, driven by accelerated investments in artificial intelligence and the dissipation of doubts surrounding its strategy in recent times.
This remarkable rise was bolstered by a recent announcement that Apple's next generation of AI models will rely on Google’s Gemini platform under a multi-year agreement, providing a significant confidence boost to Alphabet’s future direction.
Class A shares rose by up to 1.7% to hit $334.04, an all-time high, before later paring gains.
In a related context, a Reuters report indicated that Samsung Electronics plans to double the number of its smart devices supported by Gemini-based AI features this year, reinforcing Google’s global presence in the smart device ecosystem.
Thanks to this performance, Alphabet surpassed Apple in market capitalization last week for the first time since 2019, becoming the world's second most valuable company.
Investor Confidence Returns Strongly
These developments reflect a notable shift in investor sentiment toward Alphabet. Its stock had risen by approximately 65% by 2025, outperforming the rest of the "Magnificent Seven" companies on Wall Street.
Contributing to this turnaround was the company's success in dispelling fears about losing its early lead in AI, particularly by transforming its Google Cloud unit from a secondary activity into a primary growth engine. Additionally, it attracted a rare tech investment from Berkshire Hathaway, owned by billionaire Warren Buffett.
Gemini Reinforces Superiority
The new release, Gemini 3, received widely positive reviews, intensifying competition with OpenAI, especially after the release of "ChatGPT 5" disappointed a segment of users.
Google Cloud revenue recorded a 34% jump during the third quarter, driven by a rise in the value of backlog contracts to $155 billion, alongside Google's success in leasing its internally developed AI chips to external clients.
With this achievement, Alphabet became the fourth company in history to reach a market capitalization of $4 trillion, following Nvidia, Microsoft, and Apple.
The company's stock also received additional support following a US court decision last September rejecting the breakup of the company and allowing it to retain control over the Chrome browser and the Android operating system, thereby bolstering its regulatory stability and future prospects.
