Alphabet (GOOGL.O) reached a $4 trillion market valuation on Monday, driven by investor confidence in its sharpened artificial intelligence strategy, Reuters reported. The milestone also marked the first time since 2019 that Alphabet surpassed Apple (AAPL.O) in market capitalization, making it the world’s second most valuable company.
Investor sentiment has shifted dramatically in Alphabet’s favor, with its stock climbing roughly 65% in 2025, outperforming peers in Wall Street’s so-called Magnificent Seven group of elite tech companies. The stock has gained an additional 6% so far in 2026 and was last trading up 1.1%. Analysts say the surge reflects Alphabet’s success in transforming a previously overlooked cloud unit into a major growth engine and drawing rare outside investment, including from Warren Buffett’s Berkshire Hathaway (BRKa.N), Reuters noted.
The company’s new Gemini 3 AI model has received strong reviews, intensifying competition with OpenAI, whose GPT-5 failed to meet some users’ expectations. Samsung Electronics reportedly plans to double the number of mobile devices using Google’s Gemini-powered AI this year, according to Reuters. Google Cloud also posted 34% revenue growth in the third quarter, with a backlog of unrecognized sales contracts reaching $155 billion. Renting out proprietary AI chips, previously reserved for internal use, has further accelerated the unit’s growth, and The Information reported that Meta Platforms (META.O) is in discussions to purchase billions of dollars’ worth of these chips for its data centers starting in 2027.
Alphabet’s core advertising business has largely held steady despite economic uncertainty and intensifying competition, providing a stable revenue foundation as AI initiatives drive new growth. The company is the fourth to reach a $4 trillion market capitalization, joining Nvidia (NVDA.O), Microsoft (MSFT.O), and Apple. The stock has also benefited from a September U.S. court ruling allowing Alphabet to retain control over its Chrome browser and Android operating system, avoiding a potential breakup.
Reuters highlights that Alphabet’s milestones signal not only a rebound in investor confidence but also its leading position in the high-stakes AI race, reinforcing its dominance in both cloud computing and digital advertising while setting the stage for further expansion in emerging AI-driven markets.
