Alphabet Market Cap Tops $4 Trillion

Recently, On January 12 (U.S. time), Alphabet, Google's parent company, officially crossed the $4 trillion market capitalization milestone, underscoring renewed investor confidence as the company doubles down on artificial intelligence and reclaims a leading position in the highly competitive AI race.

Alphabet's recent AI push is already showing results. The company announced a multi-year agreement under which Apple's next-generation AI models will be built on Google's Gemini platform, a strong endorsement of its technology roadmap. Following the news, Alphabet Class A shares briefly rose 1.7% to a record high of $334.04 before easing back.

Earlier reports also indicated that Samsung Electronics plans to double the number of mobile devices powered by Gemini AI this year, reaching around 800 million units. Together, these developments highlight Gemini's growing footprint across major consumer electronics ecosystems.

Last week, Alphabet's market value surpassed Apple's for the first time since 2019, making it the world's second most valuable listed company. This milestone reflects a clear shift in market sentiment, with analysts now expecting Alphabet's stock to climb about 65% in 2025, outperforming other members of Wall Street's so-called "Magnificent Seven."

A key driver behind this turnaround has been Alphabet's cloud business. Once seen as a secondary unit, Google Cloud has emerged as a major growth engine, helping ease concerns that the company had missed out on early AI momentum. The progress even attracted a rare technology-focused investment from Berkshire Hathaway, led by Warren Buffett.

"Among the Magnificent Seven, Alphabet has been the biggest surprise for us over the past 12 months," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. "What really stands out is innovation. That's what has allowed them to pull ahead recently, and the earnings numbers clearly reflect it."

The newly released Gemini 3 model has received strong industry feedback, increasing pressure on OpenAI after mixed reactions to GPT-5 from some users. At the same time, Google Cloud posted 34% year-on-year revenue growth in the third quarter, with an unconfirmed contract backlog reaching $155 billion. Growth has also been fueled by making Google's in-house AI accelerator, the TPU, available to external customers.

Market interest in Alphabet's custom chips is rising as well. Meta is reportedly in talks to purchase billions of dollars' worth of Alphabet-designed chips for its data centers, with deployment expected to begin in 2027.

Meanwhile, Alphabet's core advertising business has remained resilient, holding steady despite economic uncertainty and intense competition. Alphabet now joins Nvidia, Microsoft, and Apple as the fourth company in history to surpass a $4 trillion valuation.

Adding to the positive outlook, a U.S. judge ruled in September 2025 that Alphabet does not need to break up and can retain control of the Chrome browser and Android operating system.