Alphabet reaches $4 trillion valuation amid AI push

Alphabet reached a market valuation of $4 trillion on Monday, as the Google parent’s renewed focus on artificial intelligence eased investor concerns about its long-term strategy and placed it back at the centre of the global AI race, according to a Reuters report.

The technology group surpassed Apple in market capitalisation on Wednesday for the first time since 2019, making it the world’s second most valuable company. The development marks a sharp turnaround in market sentiment, with Alphabet shares rising about 65% in 2025, outperforming its peers within Wall Street’s so-called Magnificent Seven group of stocks.

The stock has gained a further 6% so far this year and was last trading up 1.1%. The rally has been driven in part by Alphabet addressing investor concerns that it had squandered an early lead in artificial intelligence, notably by transforming its cloud business into a major growth engine and attracting a rare technology investment from Warren Buffett’s Berkshire Hathaway.

Momentum has also been supported by strong reception for Alphabet’s Gemini 3 model, which has intensified competitive pressure on OpenAI after its GPT-5 release reportedly left some users unimpressed. Reuters reported that Samsung Electronics plans to double the number of its mobile devices featuring AI capabilities powered by Google’s Gemini this year.

Google Cloud recorded a 34% increase in revenue in the third quarter, while its backlog of unrecognised sales contracts rose to $155 billion. The company has also accelerated growth by renting out its in-house developed AI chips, previously reserved for internal use, to external customers.

Highlighting rising demand for Alphabet’s AI hardware, The Information reported that Meta Platforms is in discussions to spend billions of dollars on the company’s chips for use in its data centres from 2027 onwards.

Meanwhile, Alphabet’s core advertising business, which remains its primary source of revenue, has shown resilience despite broader economic uncertainty and intense competition across digital advertising markets.

Alphabet is now the fourth company to reach the $4 trillion valuation milestone, following Nvidia, Microsoft and Apple. The stock has also benefited from a September ruling by a US judge that rejected proposals to break up the company, allowing it to retain control of its Chrome browser and Android mobile operating system.