Alphabet has crossed a $4 trillion market valuation, marking a sharp turnaround in investor confidence as the Google parent convinces markets that its artificial intelligence strategy is delivering results. The milestone places Alphabet among a small group of global companies to reach this level, reflecting renewed faith in its long-term growth prospects.
The company briefly overtook Apple this week to become the world’s second-most valuable listed firm, behind Nvidia. According to Reuters, this was the first time Alphabet had surpassed Apple by market capitalisation since 2019, underscoring how rapidly sentiment has shifted in its favour.
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Alphabet’s share price rose about 65% during 2025, outperforming other large US technology stocks commonly grouped as the “Magnificent Seven”. Gains have continued into early 2026, suggesting investors are increasingly comfortable with the company’s direction after earlier concerns that it had fallen behind rivals in artificial intelligence.
Central to this re-rating has been Alphabet’s progress in AI development. As reported by Reuters, the launch of its Gemini 3 model has been well received, particularly after mixed reactions to OpenAI’s GPT-5. Samsung Electronics is also expected to expand the use of Gemini-powered features across more of its mobile devices this year.
The company’s cloud division has emerged as a major growth engine. Google Cloud revenue rose 34% in the third quarter, while the value of contracted but unrecognised sales climbed to $155 billion. Alphabet has also begun renting out its in-house AI chips to external customers, accelerating growth and improving returns on earlier investments.
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Demand for these chips appears to be strengthening. According to The Information, Meta Platforms has held discussions about spending billions of dollars on Alphabet’s chips for use in data centres from 2027, highlighting the strategic importance of Alphabet’s infrastructure.
Alongside these developments, Alphabet’s advertising business has remained resilient despite economic pressure and intense competition. The company becomes the fourth firm to reach a $4 trillion valuation, joining Nvidia, Microsoft and Apple, and signalling how AI has reshaped the hierarchy of global technology companies.