Alphabet reaches a $4 trillion valuation as the renewed focus on AI enhances market sentiment.

Last week, the tech giant overtook Apple in market capitalization for the first time since 2019, establishing itself as the world’s second-most valuable company. These milestones signify a remarkable shift in investor sentiment towards Alphabet. Its shares soared approximately 65% in 2025, surpassing its peers in Wall Street’s prestigious “Magnificent Seven” stock group. The stock has increased by another 6% this year and was last reported up by 1.1%.

This change was fueled by the company addressing fears that it had wasted an early advantage in AI, transforming its previously overlooked cloud division into a significant growth driver and securing a rare tech investment from Warren Buffett’s Berkshire Hathaway. Alphabet’s new Gemini 3 model has received positive reviews, increasing pressure on OpenAI after its GPT-5 release left some users feeling disappointed.

According to a Reuters report, Samsung Electronics intends to double the number of mobile devices featuring AI capabilities powered by Google’s Gemini this year. Google Cloud revenue surged by 34% in the third quarter, while its backlog of unrecognized sales contracts climbed to $155 billion. Renting out Google’s self-developed AI chips — which were previously used only internally — to external clients has further propelled growth.

In light of rising demand, The Information reported that Meta Platforms is negotiating to invest billions of dollars in Alphabet’s chips for use in its data centers starting in 2027. Meanwhile, Alphabet’s leading advertising business has remained largely robust despite economic uncertainties and fierce competition.

Alphabet is the fourth company to achieve the $4 trillion milestone, following Nvidia, Microsoft, and Apple. The stock has also gained from a US court ruling in September that dismissed calls to dismantle the company, allowing it to maintain control over its Chrome browser and Android mobile operating system.