Alphabet reached a $4 trillion market valuation on Monday as a result of Google’s sharpened focus on artificial intelligence, which eased investor doubts about its long-term strategy and thereby pushed the company back to the forefront of the high-stakes global AI race.
At the same time, the technology giant surpassed Apple in market capitalization on Wednesday for the first time since 2019, thereby becoming the second most valuable company in the world.
Together, these milestones highlight a dramatic turnaround in investor sentiment toward Alphabet, with the stock rising nearly 65% in 2025, thus outperforming its peers within Wall Street’s elite group of stocks, the so-called Magnificent Seven.
So far this year, the stock has added another 6%, and most recently, shares traded up 1.1%.
Notably, this shift stemmed from Alphabet addressing concerns that it had squandered an early AI advantage, as the company transformed its once-underestimated cloud division into a powerful growth engine and also attracted a rare technology investment from Warren Buffett’s Berkshire Hathaway.
In addition, the company’s new Gemini 3 model received strong reviews, which in turn intensified pressure on OpenAI after GPT-5 left some users underwhelmed.
Meanwhile, Google Cloud’s revenue surged 34% in the third quarter, while simultaneously its backlog of non-recognized sales contracts climbed to $155 billion.
Furthermore, Alphabet accelerated this growth by renting its self-developed AI chips—previously reserved for internal use—to external customers.
Reflecting this rising demand, it was reported that Meta Platforms was in discussions to spend billions of dollars on Alphabet’s chips for use in its data centers beginning in 2027.
At the same time, Alphabet’s core advertising business, which remains its dominant revenue driver, has largely maintained stability despite economic uncertainty and intensifying competition.
Ultimately, the company became the fourth company to reach the $4 trillion valuation milestone, following Nvidia, Microsoft, and Apple.
Alphabet’s resurgence underscores how a renewed AI strategy, strong cloud performance, and resilient advertising revenues can reshape market perception and restore investor confidence. As a result, the company has reasserted itself as a central force in the global technology landscape, positioning Alphabet to remain a key contender in the rapidly evolving AI-driven economy.
