Alphabet’s rise to $4 trillion cements status as AI trade winner
(Bloomberg) — Alphabet Inc. It soared above the $4 trillion market cap on Monday, becoming one of the few companies to cross the threshold as investors increasingly view Google’s parent company as one of the biggest winners of the AI boom.
Shares closed up 1% at $331.86, implying a market cap of just over $4 trillion. The company recently surpassed Apple Inc. to become the second largest company after Nvidia Corp. Only Nvidia, Apple and Microsoft Corp. It has surpassed the $4 trillion mark, and Nvidia remains the only company worth over $5 trillion.
Monday’s earnings came on news that the company reached a multi-year deal with Apple to power the iPhone maker’s artificial intelligence technology, including the Siri voice assistant. Apple rose 0.3 percent on Monday.
Alphabet’s shares are up 6% so far this year, on top of a more than 65% rise last year, making it the best-performing company among the Magnificent Seven. The gain in 2025 added almost $1.5 trillion to Alphabet’s market value.
Alphabet’s rapidly evolving sensibility appears to have dominant positions in key areas of artificial intelligence. In particular, rave reviews for the company’s latest Gemini AI model should help ease concerns about competition from companies like OpenAI, while tensor processing unit chips are also seen as a potentially important driver of future revenue growth.
“The company’s competitive advantages are not only robust but growing, and no other player has the models, computing, applications, talent and data to succeed in AI,” said Divyaunsh Divatia, research analyst at Janus Henderson Investors. “It’s definitely seen as a big AI winner, and that strength is helping investors feel more comfortable and giving it a higher valuation than it was before.”
Shares trade for about 28 times estimated earnings; This is nearly its highest level since 2021 and notably above the 10-year average of 20.5. Alphabet’s multiple has fallen to almost 14 by mid-2025.
Despite the increase in valuation, Alphabet continues to trade at a slight discount to the overall Magnificent Seven Index.
The company’s value credentials also received a rare form of validation for a technology company after Warren Buffett’s Berkshire Hathaway Inc. announced in November that it had taken a third-quarter stake in Alphabet. This position represents a show of confidence from the legendary investor, who typically has less exposure to technology stocks.
Disclaimer: This story was published from a news agency feed without modifications to the text.
