Alphabet (GOOGL) Stock: Company Reaches $4 Trillion Market Valuation

TLDR

• Alphabet briefly hit $4 trillion market valuation on Monday, becoming the fourth company to reach this milestone after Nvidia, Microsoft, and Apple.
• Apple announced a multi-year deal where Google’s Gemini will power the next generation of its AI models and Siri.
• Alphabet stock surged 65% in 2025, outperforming other Magnificent Seven tech stocks.
• Google Cloud revenue jumped 34% in Q3, with a backlog of non-recognized sales contracts reaching $155 billion.
• The company’s custom AI chips are attracting major customers, with Meta Platforms reportedly in talks to spend billions on Alphabet’s chips starting in 2027.

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Alphabet shares climbed Monday as the Google parent company briefly crossed the $4 trillion market capitalization threshold. The stock rose as much as 1.7% to $334.04 before settling at $331.86.

Alphabet Inc., GOOGL

The company became the fourth to hit this valuation level. Nvidia, Microsoft, and Apple previously reached the $4 trillion mark, though Microsoft and Apple have since dropped below that threshold.

Apple announced Monday that Google’s Gemini will serve as the foundation for its artificial intelligence models under a multi-year agreement. The partnership will power the next generation of Siri.

Alphabet’s stock has jumped 65% in 2025. This marks the sharpest rally for the company since 2009 when shares doubled during the financial crisis recovery.

Last week, Alphabet surpassed Apple in market capitalization for the first time since 2019. The company became the second most valuable in the world.

Samsung Electronics plans to double the number of its mobile devices with AI features powered by Gemini this year. This expansion signals growing adoption of Google’s AI technology across major hardware manufacturers.

Cloud Business Drives Growth

Google Cloud revenue increased 34% in the third quarter. The division’s backlog of non-recognized sales contracts reached $155 billion.

The company has opened its self-developed AI chips to outside customers. Previously reserved for internal use, these chips now contribute to the cloud unit’s rapid expansion.

Meta Platforms is in talks to spend billions of dollars on Alphabet’s chips for its data centers starting in 2027. The deal would represent a major customer win for Google’s custom hardware business.

Warren Buffett’s Berkshire Hathaway made a rare tech investment in Alphabet. The vote of confidence from the legendary investor helped shift sentiment around the stock.

AI Strategy Takes Center Stage

Google launched its Gemini 3 model in December to strong reviews. The release intensified pressure on OpenAI after some users found GPT-5 underwhelming.

Analysts upgraded their outlook on Alphabet stock in early January. They cited technological advantages of the Gemini assistant app over ChatGPT.

Google’s advertising business has remained steady despite economic uncertainty and competition. The division continues to generate the majority of company revenue.

Citi analysts named Google a top internet pick for 2026. They noted that 70% of Google Cloud customers use its AI products.

In November, Alphabet unveiled Ironwood, the seventh generation of its tensor processing units. The custom AI chip emerged as a potential alternative to Nvidia’s offerings.

A U.S. judge ruled in September against breaking up the company. Alphabet retained control of its Chrome browser and Android mobile operating system.

Alphabet holds the strongest footprint across several layers in the AI tech stack according to analysts. The company’s decade-long investments have created deep competitive advantages.

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