Prime Highlights:
- Alphabet has become the fourth company ever to reach a $4 trillion market capitalization, joining Apple, Microsoft, and Nvidia.
- Apple announced it will use Google’s Gemini technology for the next generation of Siri and AI models, boosting investor confidence.
Key Facts:
- Alphabet shares closed at $331.86, surpassing the $4 trillion market value milestone.
- The company’s stock surged 65% in 2025, marking its strongest yearly rally since 2009.
Background:
Alphabet, the parent company of Google, has become the world’s fourth publicly traded company to reach a $4 trillion market capitalisation, after its shares climbed to record highs on renewed confidence in its artificial intelligence strategy.
Alphabet stock rose 1% on Monday to close at $331.86, pushing its market value just above the $4 trillion mark. The milestone places the search giant alongside Nvidia, Microsoft and Apple as the only companies to have crossed the threshold.
The rally followed an announcement from Apple that Google’s Gemini technology will form the foundation of its artificial intelligence models and power the next generation of Siri. The partnership was seen by investors as a strong endorsement of Google’s AI capabilities and long-term competitiveness.
While Nvidia and Microsoft first surpassed $4 trillion in July, and Apple briefly crossed the line in October, all three later slipped below the level. Alphabet’s entry comes after a standout year on Wall Street, with its shares surging 65% in 2025, the company’s strongest annual performance since 2009, when its stock doubled during the post-financial-crisis rebound.
Despite growing competition from OpenAI’s ChatGPT and Sora, and lingering concerns about the future of digital advertising in an AI-driven internet, Alphabet has managed to reassure investors that its innovation engine remains strong.
In a note dated January 8, analyst Deepak Mathivanan upgraded Alphabet’s stock, arguing that the advantages of Google’s Gemini assistant were being underestimated.
“We believe the technological advantages of the Gemini assistant app, powered by Google’s grounding assets, versus ChatGPT are underappreciated,” Mathivanan wrote, adding that Google has built “deep competitive moats” through more than a decade of investment across the AI technology stack.
Citi analysts also named Google a top internet pick for 2026, pointing to strong adoption of its AI offerings within Google Cloud. According to the firm, around 70% of Google Cloud customers are already using its AI products, supported by the company’s in-house chips, infrastructure capacity and proprietary models.
As optimism around artificial intelligence continues to reshape markets, Alphabet’s $4 trillion valuation signals growing confidence that Google can remain a central force in the next phase of the tech industry’s evolution.
