Alphabet briefly touched a $4 trillion market valuation on Monday, as renewed confidence in the company’s artificial intelligence strategy reassured investors and pushed the Google parent back into the spotlight of the global AI race.
Reinforcing that momentum, Alphabet announced that the next generation of Apple’s AI models will be built on Google’s Gemini platform under a multi-year agreement. The deal was widely seen as a strong endorsement of Alphabet’s AI capabilities.
Alphabet’s Class A shares climbed as much as 1.7% to a record high of $334.04 before paring gains later in the session.
Earlier this year, a Reuters report revealed that Samsung Electronics plans to double the number of mobile devices powered by Gemini AI features in 2025, further expanding Alphabet’s reach across the consumer tech ecosystem.
Last week, Alphabet overtook Apple in market capitalization for the first time since 2019, becoming the world’s second most valuable publicly traded company. The milestone highlights a dramatic turnaround in investor sentiment, with Alphabet shares up roughly 65% so far in 2025, outperforming other members of Wall Street’s so-called “Magnificent Seven.”
The rally has been driven by Alphabet easing concerns that it had squandered an early lead in artificial intelligence. Instead, the company transformed its once-underappreciated cloud division into a major growth driver and attracted a rare technology investment from Berkshire Hathaway.
Phil Blancato, CEO of Ladenburg Thalmann Asset Management, said Alphabet has been the biggest surprise among the Magnificent Seven over the past year, noting that the company is expanding well beyond its traditional business model. He credited Alphabet’s renewed focus on innovation, pointing to improving earnings data as evidence.
Momentum has also been supported by strong reception for the new Gemini 3 model, which has intensified competition with OpenAI, particularly after mixed reactions to GPT-5.
Alphabet’s cloud business continues to deliver standout results. Google Cloud revenue jumped 34% in the third quarter, while its backlog of unrecognized sales contracts rose to $155 billion. Growth has been further accelerated by renting out Alphabet’s in-house AI chips — previously reserved for internal use — to external customers.
Reflecting surging demand, The Information reported that Meta Platforms is in discussions to spend billions of dollars on Alphabet’s AI chips for data center use beginning in 2027.
At the same time, Alphabet’s core advertising business has remained resilient despite economic uncertainty and intense competition, continuing to provide a stable revenue base.
Alphabet is now the fourth company to reach the $4 trillion valuation milestone, joining Nvidia, Microsoft, and Apple.
The stock has also benefited from a U.S. court ruling in September that rejected calls to break up the company, allowing Alphabet to retain control of its Chrome browser and Android mobile operating system.
