Alphabet, Google’s parent company, has officially crossed a major financial milestone. On Monday, it became the fourth company in history to reach a $4 trillion market valuation, joining Nvidia, Microsoft, and Apple. Only Nvidia now sits above it, making Alphabet the world’s second most valuable company.
The surge reflects investor excitement around artificial intelligence, which has driven tech stocks to record highs over the past year. Even concerns about inflated valuations, including warnings from Google’s own leadership, have not cooled enthusiasm. Alphabet’s share price has climbed roughly 75% in the past year and is already up nearly 7% since January began.
Apple Deal and Gemini Push Google’s AI Ambitions Forward
A key catalyst behind Alphabet’s rise is Apple’s decision to integrate Google’s Gemini AI model into a new version of Siri. While financial details of the partnership remain undisclosed, the deal signals strong confidence in Google’s AI capabilities and its position in the next generation of digital assistants.
Google moved aggressively after OpenAI’s ChatGPT shook the tech world. It launched Gemini 3 to strong reviews, with internal testing showing improved accuracy, better handling of text and images, and stronger coding abilities. Though Google missed being first to dominate the chatbot market, Gemini 3 has since outperformed rivals in several benchmark tests.
Unlike AI startups such as OpenAI and Anthropic that rely heavily on external funding, Google’s vast existing revenue streams give it stability and scale. Still, competition is intensifying. OpenAI and Perplexity have launched their own web browsers, and Microsoft has embedded its Copilot AI into Edge, signaling a growing battle over the future of online search and digital interaction.
Antitrust Relief and Expanding Revenue Engines
Alphabet’s dominance in search has drawn legal challenges for years, but a recent US court ruling eased investor anxiety. The judge ordered Google to share certain search data with competitors but stopped short of breaking up the company, allowing it to retain control of Chrome. Another case involving its advertising business is still pending, though the favorable search ruling helped boost confidence in Alphabet’s long term outlook.
Analysts say search remains Alphabet’s foundation, but other divisions are increasingly driving growth. YouTube advertising revenue and Google Cloud have posted strong gains, with cloud revenue rising 34% in the most recent quarterly report. Waymo, Alphabet’s autonomous vehicle unit, also continues to add to the company’s future potential.
In cloud computing, Google faces stiff competition from Amazon and Microsoft, yet it has secured major deals, including supplying specialised AI chips to Anthropic. These chips, once used only internally, are now available to external clients, accelerating growth in Google’s cloud business.
Can Alphabet Sustain Its Record Valuation?
Market experts describe Alphabet as a company powered by multiple leading businesses rather than a single revenue stream. If it can maintain momentum in cloud services while stabilising advertising income across search and YouTube, continued growth is likely.
However, Alphabet’s valuation remains high compared to projected earnings, leading some analysts to warn that the stock could be overpriced. Investors will be watching closely for any sign that enthusiasm around AI is cooling.
For now, Alphabet stands firmly among the world’s most powerful companies, riding an AI wave that continues to reshape the tech landscape.
