Alphabet Inc., the parent company of Google, is racing toward a $4 trillion market valuation as investor enthusiasm grows around its artificial intelligence (AI) initiatives and cloud business. Shares of the company recently surged over 5% to $315.90, giving it a market capitalization of roughly $3.82 trillion, a record high for the company.
This year, Alphabet’s stock has risen nearly 70%, outperforming other major tech players, including Microsoft and Amazon. Analysts attribute the strong rally to the company’s renewed focus on AI, particularly the positive reception of its Gemini 3 AI model, which has reinforced confidence in Alphabet’s ability to lead in the fast-evolving AI sector.
The company has also seen improvements in its cloud division, which has boosted revenue growth and added to investor optimism. Further support came from prominent investors like Berkshire Hathaway, whose purchases of Alphabet shares signaled confidence in the company’s long-term potential.
If Alphabet crosses the $4 trillion mark, it will join a small group of tech giants, including Apple, Microsoft, and Nvidia, that have reached such a milestone. This surge reflects the growing impact of AI on global markets, highlighting how the technology is driving valuations and reshaping competition in the tech sector.
While the rally has excited investors, some experts caution that stock prices may be rising faster than earnings, echoing concerns seen in previous tech booms. Regulators are also closely watching the growth of Big Tech, but Alphabet’s latest performance demonstrates that innovation and market confidence remain strong drivers of company value.
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