Written by The Banking Post
Alphabet is on the verge of joining the elite $4 trillion valuation club as a powerful artificial intelligence rally pushes its stock to new heights. Shares jumped more than 5% on Monday to a record $315.9, lifting the company’s market capitalisation to $3.82 trillion. Its stock has surged nearly 70% this year—far ahead of Microsoft and Amazon.
Only Nvidia, Microsoft and Apple have previously crossed the $4 trillion threshold, though only Nvidia and Apple remain at that level.
The rally marks a sharp turnaround for Alphabet, which just two years ago faced doubts about losing its AI edge after the launch of ChatGPT. Despite being an early pioneer in generative AI, the company struggled with investor sentiment before regaining momentum this year.
Its cloud business has emerged as a major growth engine, helped by the entry of Berkshire Hathaway as an investor and strong initial reactions to Alphabet’s new Gemini 3 model. One market analyst said Berkshire’s investment has acted as a strong signal to investors, noting that “anything Berkshire does is worth emulating.”
Alphabet has also benefited as Big Tech avoided major fallout from the bipartisan antitrust push in Washington. While a court ruled that Google’s search business is an illegal monopoly, it stopped short of ordering a breakup, allowing the company to retain its core platforms.
The rapid climb, however, has revived concerns about overstretched valuations reminiscent of the late-1990s dot-com bubble. Market unease has been fuelled by aggressive AI bets from firms like SoftBank and complex investment loops involving OpenAI and Nvidia.
Even so, analysts say Google remains well-positioned in the AI race, supported by robust cash flow, its own in-house chips that reduce reliance on Nvidia’s costly processors, and an expansive search ecosystem already benefiting from AI integration.
