Alphabet moved closer to reaching a $4 trillion valuation on Monday, positioning itself to become only the fourth company in history to join this elite group. The Google parent company is benefiting from a powerful rally driven by advancements in artificial intelligence.
Shares climbed more than 5% to a new all-time high of $315.90, pushing the company’s market capitalization to $3.82 trillion. Alphabet’s stock has now surged nearly 70% this year, significantly outperforming other AI heavyweights such as Microsoft and Amazon.
Nvidia, Microsoft, and Apple have previously crossed the $4 trillion mark, though only Nvidia and Apple currently remain above that milestone.
This rapid rise marks a dramatic shift in investor sentiment. After the launch of ChatGPT in 2022, some feared Alphabet had fallen behind OpenAI in the AI race, despite being responsible for many of the foundational breakthroughs in generative AI. This year, however, the company has regained momentum by transforming its cloud division into a strong growth engine. It also attracted a stake from Warren Buffett’s Berkshire Hathaway and earned positive early feedback for its Gemini 3 model.
Steve Sosnick, chief market strategist at Interactive Brokers, noted that Berkshire’s involvement has played a major role in boosting investor confidence. He added that markets often follow Berkshire’s moves, regardless of Buffett’s personal involvement in specific investments.
Alphabet shares have also strengthened as Big Tech has largely avoided major penalties during the recent bipartisan antitrust efforts that began under President Donald Trump. Google recently avoided a forced sale of its Chrome browser after a court ruled its search business to be an illegal monopoly but did not order a breakup.
Even so, Alphabet’s rapid climb is raising concerns about overheated market valuations. Some business leaders warn that parts of the market may be drifting away from underlying fundamentals, drawing comparisons to the dot-com bubble of the late 1990s.
Additional concerns stem from a series of intertwined deals among OpenAI, Nvidia, and other leaders in the AI space, which critics say may be inflating valuations.
Despite these worries, analysts believe Google is strongly positioned in the AI competition. The company benefits from robust cash flow, its own in-house chips that offer an alternative to Nvidia’s expensive processors, and a dominant global search business already gaining from AI-powered improvements.
