Alphabet Surges to $4 Trillion Valuation as AI Innovations Boost Investor Confidence
Alphabet, the parent company of Google, briefly crossed the $4 trillion market valuation mark on Monday, becoming the fourth company ever to reach this milestone. Investor enthusiasm surged after Alphabet highlighted its renewed focus on artificial intelligence (AI), signaling confidence in the company’s long-term strategy and placing it back at the center of the high-stakes AI race. The company’s Class-A shares climbed as much as 1.7% to hit a record high of $334.04 before trimming gains later in the session.
A key driver behind the rally was Alphabet’s announcement of a multi-year partnership with Apple. Under the deal, Apple’s next-generation AI models will be built on Google’s Gemini platform, showing industry leaders’ confidence in Alphabet’s AI capabilities. Samsung Electronics also plans to double the number of mobile devices powered by Gemini AI features in 2026, highlighting growing demand for Alphabet’s technology across global markets.
Alphabet’s stock has soared approximately 65% in 2025, outperforming peers in Wall Street’s “Magnificent Seven” group of elite tech companies. Analysts say this shift reflects growing investor trust in Alphabet’s innovation, particularly in cloud computing and AI. Warren Buffett’s Berkshire Hathaway recently made a rare investment in the company, signaling Wall Street’s renewed enthusiasm. Phil Blancato, CEO of Ladenburg Thalmann Asset Management, remarked that Alphabet’s transformation has “surprised us all over the last 12 months,” praising the company’s ability to innovate beyond its traditional business model.
The new Gemini 3 AI model has received strong reviews, intensifying competition with OpenAI after mixed reactions to GPT-5. Alphabet Cloud revenue jumped 34% in Q3, with a backlog of unrecognized sales contracts rising to $155 billion. The company’s strategy of renting out AI chips originally reserved for internal use has further accelerated growth, with reports indicating that Meta Platforms is planning multibillion-dollar deals for Alphabet’s chips in its data centers starting 2027.
Despite economic uncertainty, Alphabet’s advertising business remains robust, contributing to steady revenue growth. Legal stability has also helped investor sentiment, following a U.S. judge’s ruling in September that allowed Alphabet to maintain control over Chrome and Android. With its $4 trillion milestone, Alphabet now joins Nvidia, Microsoft, and Apple as one of the few companies to reach this historic valuation, cementing its status as a tech powerhouse in the AI era.
source: Reuters