Alphabet Hits $3 Trillion Market Cap for the First Time
Google parent company Alphabet reached a market capitalization of $3 trillion on Monday, supported by renewed confidence in artificial intelligence and a favorable U.S. antitrust ruling.
Alphabet’s Class A shares rose 3.6% to $249.1, while Class C shares gained 3.4% to $249.5. Both share classes closed at record highs.
So far this year, Alphabet shares are up more than 32%, making it the strongest performer among the “Magnificent 7” tech stocks. By comparison, the S&P 500 has gained 12.5%. Alphabet now joins Apple and Microsoft in the $3 trillion club, while Nvidia leads the sector with a $4.25 trillion market valuation.
The rally followed a U.S. court ruling that allowed Alphabet to keep control of its Chrome browser and Android operating system. While Google must share some data to support advertising rivals, the decision removed the risk of divestment that had weighed on investor sentiment.
Confidence in Alphabet also grew after its cloud-computing division posted nearly 32% revenue growth in the second quarter. The gains came from stronger demand, in-house chip development, and the success of its Gemini AI model.
Investors see Alphabet as more than a search company. With businesses such as YouTube, Waymo, and AI-driven initiatives, analysts believe the company is broadening its revenue streams. Alphabet trades at 23 times forward earnings, slightly above its five-year average of 22, yet still the lowest multiple among the “Magnificent 7.”
