Nvidia, Microsoft, and Apple previously reached $4 trillion, but only Nvidia and Apple remain at that level.
The stock rose more than 5% to a record high of $315.9, increasing the company’s market value to $3.82 trillion. Photo: Reuters
Alphabet approaches a $4 trillion valuation on Monday, becoming the fourth company to enter the exclusive club as Google’s parent company rides an artificial intelligence-driven bull market.
The company’s stock rose more than 5% to a record high of $315.9, giving it a market capitalization of $3.82 trillion. The company’s stock is up nearly 70% so far this year, far outpacing AI rivals Microsoft and Amazon.com.
Nvidia, Microsoft, and Apple had previously reached valuations of $4 trillion. Only Nvidia and Apple remain on the list.
The surge reflects a notable reversal in sentiment towards Alphabet after the launch of ChatGPT in 2022, after some investors worried that the company had lost its AI edge to OpenAI, despite the company inventing much of the underlying technology behind generative AI.
read more: Harnessing AI: Aga Khan University explores the future of work and the synergy between humans and AI
Alphabet regained momentum this year by turning its once ailing cloud business into a major growth driver, bringing in Warren Buffett’s Berkshire Hathaway as an investor and winning early rave reviews for its new Gemini 3 model.
Steve Sosnick, chief market analyst at Interactive Brokers, said Berkshire’s stock is a key draw for investors.
“While I doubt that Warren Buffett had any role in this acquisition, the market still thinks that anything Berkshire does is worth emulating, and to be fair, that has worked for a long time,” Sosnick said.
Google shares also rose after Big Tech companies emerged largely unscathed in recent months from the bipartisan antitrust push that began during President Donald Trump’s first term.
The company avoided a forced sale of its Chrome browser after a court found its search business to be an illegal monopoly, but stopped short of a breakup order.
Still, the milestone could fuel fears of soaring valuations, with some business leaders warning that market movements are becoming disconnected from business fundamentals, raising fears of a bubble reminiscent of the dot-com boom of the 1990s.
A wave of circular deals involving OpenAI and Nvidia, two companies at the center of the AI boom, is also adding to concerns.
Still, analysts said Google is well-positioned in the AI race thanks to its strong cash flow, its own chips that can replace Nvidia’s expensive processors, and its vast Internet search business that is already benefiting from AI integration.
