Alphabet briefly reached a market value of $4 trillion on Monday, as its parent company Google’s focus on artificial intelligence dispelled doubts about its strategy and positioned it at the forefront of the high-stakes AI race.
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In the latest sign that its efforts are paying off, Alphabet announced that the next generation of Apple’s AI models will rely on Google’s Gemini model, under a multi-year agreement.
Class A shares of the company rose by up to 1.7% to $334.04, reaching a new record before giving up some gains later.
Earlier this year, a Reuters report indicated that Samsung Electronics plans to double the number of mobile devices equipped with AI features powered by Gemini during 2026.
Last week, Alphabet surpassed Apple in market value for the first time since 2019, becoming the world’s second most valuable company.
These milestones reflect a notable shift in investor sentiment toward Alphabet, whose stock surged roughly 65% in 2025, outperforming peers among the “Seven Big Tech” stocks on Wall Street.
This turnaround has been driven by the company’s success in allaying concerns that it had lost an early AI advantage, by transforming its previously underutilized cloud computing unit into a major growth engine, and by attracting rare tech investment from Warren Buffett’s Berkshire Hathaway.
Phil Blancato, CEO of Ladenburg Thalmann Asset Management, said: “Among the Seven Big Tech stocks, this is the name that surprised us all over the past twelve months, achieving breakthroughs beyond its traditional model.”
He added: “What counts for the company is innovation, which has distinguished it from many other firms recently, as reflected in its earnings results.”
The new Gemini 3 model has received strong positive reviews, putting pressure on OpenAI after the GPT-5 model disappointed some users.
Google Cloud revenue jumped 34% in Q3, while its backlog of unrecognized revenue reached $155 billion. The decision to rent out AI chips developed internally by Google—previously for internal use only—to external clients has accelerated growth in this unit.
Reflecting rising demand, The Information reported that Meta Platforms is in talks to spend billions on Alphabet chips for use in its data centers starting in 2027.
Meanwhile, advertising activity—the main source of Alphabet’s revenue—remained relatively stable despite economic uncertainty and intense competition.
Alphabet thus becomes the fourth company to reach a $4 trillion market value, after Nvidia, Microsoft, and Apple.
The stock also benefited from a U.S. court ruling in September that rejected breaking up the company, allowing it to retain control over the Chrome browser and Android mobile operating system.
—Agencies
