AI Sparks Record Valuation
Alphabet, Google’s parent company, has crossed the $4 trillion mark, becoming the fourth company to do so after Nvidia, Microsoft, and Apple. The surge comes as artificial intelligence continues to fuel investor enthusiasm, with expectations for rapid innovation pushing tech stocks to historic highs. Over the past year, Alphabet’s stock has climbed roughly 75%, rising nearly 7% since January, boosted in part by Apple’s decision to integrate Google’s Gemini AI into Siri—a clear endorsement of the company’s AI capabilities.
Competition and Legal Challenges
The rise of Gemini 3, Google’s latest AI model, has helped the company remain competitive against rivals like OpenAI and Anthropic. Gemini 3 delivers improved accuracy, blends text and images more effectively, and offers upgraded coding abilities. Alphabet’s stable funding also gives it an edge over start-ups that rely on constant fundraising. Meanwhile, Google’s core search business has faced antitrust scrutiny in the US. A recent court ruling required the company to share data with competitors but allowed it to retain control of Chrome, easing potential regulatory hurdles.
Cloud Expansion and Diversified Growth
Alphabet’s growth is not limited to search and AI. YouTube advertising, cloud computing, and Waymo all contribute significantly to the company’s valuation. Google Cloud, in particular, has benefited from deals such as supplying 1 million AI chips to Anthropic, supporting smaller firms’ access to advanced technology. Analysts highlight Alphabet as a “sum-of-the-parts” company, thriving across multiple sectors. While the stock carries a high valuation, experts believe strong momentum in advertising, cloud, and AI could sustain its market leadership, even as investors monitor the broader AI boom for signs of cooling.
