Alphabet Nears $4 Trillion Valuation on AI-Driven Stock Surge
Alphabet, the parent company of Google, closed in on a $4 trillion market valuation on Monday, positioning itself to become only the fourth company ever to reach that milestone. The surge highlights how investor enthusiasm for artificial intelligence continues to propel major technology stocks to record highs.
Alphabet’s Stock Soars on AI Momentum
Shares of Alphabet rose more than 5% to an all-time high of $315.90, giving the company a market capitalisation of $3.82 trillion. The stock has gained nearly 70% so far this year, outperforming competitors such as Microsoft and Amazon. Only Nvidia and Apple currently remain in the $4 trillion club, after Microsoft briefly crossed the threshold earlier this year.
The rally marks a major turnaround in investor sentiment. Following the 2022 debut of OpenAI’s ChatGPT, many analysts had questioned whether Google was losing its lead in AI — despite being the inventor of much of the underlying generative AI technology. Alphabet has since regained momentum, driven by strong growth in its cloud division and the successful rollout of its latest AI model, Gemini 3.
Berkshire Investment Adds to Investor Confidence
Investor optimism was also fuelled by Berkshire Hathaway’s recent stake in Alphabet, seen as a vote of confidence in the company’s long-term prospects. “Even though it’s doubtful Warren Buffett himself made this decision, markets still believe Berkshire’s moves are worth following — and to be fair, that strategy has paid off for years,” said Steve Sosnick, chief market analyst at Interactive Brokers.
Alphabet’s resilience has also been reinforced by the broader Big Tech sector emerging relatively unscathed from years of antitrust scrutiny. Although a US court ruled that Google’s search business violated competition laws, the company avoided a forced breakup or sale of its Chrome browser.
AI Strengths and Market Risks
Despite Alphabet’s strong fundamentals, some analysts warn that the rapid rise in valuations across AI-linked stocks may be fuelling another market bubble reminiscent of the late 1990s dot-com boom. A wave of interlinked investments among leading AI players — including OpenAI and Nvidia — has intensified those concerns.
Nonetheless, analysts maintain that Alphabet remains well-positioned in the AI race. Its deep cash reserves, in-house chip production that rivals Nvidia’s processors, and dominant internet search business all provide a strong foundation for continued growth as AI technology becomes increasingly integrated into everyday applications.
with inputs from Reuters