AI Drives Record Valuations
Alphabet, Google’s parent company, has become the fourth firm to surpass a $4 trillion market valuation, joining Nvidia, Microsoft, and Apple. Investor excitement around artificial intelligence has propelled tech stocks to new highs over the past year. Despite warnings of overvaluation—even from Google’s CEO—Alphabet’s stock has jumped roughly 75% in the last year and nearly 7% since January. A key boost came from Apple’s decision to integrate Google’s Gemini AI model into Siri, signaling strong confidence in Alphabet’s AI capabilities.
Competing on Multiple Fronts
After OpenAI’s ChatGPT shook the industry, Google responded by launching Gemini 3, a model praised for its accuracy, coding abilities, and ability to mix graphics and text seamlessly. Alphabet’s solid funding gives it a competitive edge over cash-hungry start-ups like OpenAI and Anthropic. The AI race is heating up, with Microsoft adding Copilot AI to its Edge browser and other firms pushing their own tools, creating a high-stakes battle for digital dominance.
Growth Beyond Search
Alphabet’s value comes from more than search. YouTube, Google Cloud, and Waymo all contribute substantially, with Cloud revenues up 34% to $15.2 billion and YouTube ad revenue up 15% to $10.26 billion. Deals such as providing AI chips to Anthropic have expanded Alphabet’s cloud footprint. Legal clarity in the US—forcing data sharing but avoiding a breakup—also helped support the $4 trillion milestone. Analysts note Alphabet is a “sum-of-the-parts” company: continued success across its diverse businesses will be key to sustaining growth amid high market expectations.
