Quick overview

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Alphabet became one of the few companies to surpass $4 trillion in market capitalization on Monday as investors increasingly view the parent company of Google as one of the biggest beneficiaries of the artificial intelligence boom.

 

Shares increased as much as 1.7 percent to $334 with a market capitalization of $4 trillion. Recently, the business surpassed Apple Inc. to become the second-largest company.  Apple, Microsoft Corp., and Nvidia have surpassed $4 trillion, and Nvidia is still the only business to reach $5 trillion.

The increase on Monday followed CNBC’s report that Apple had chosen Gemini to power an AI-powered Siri digital assistant. Bloomberg News revealed in November that Apple intended to pay Alphabet roughly $1 billion annually for an AI Siri.

The stock has increased by 4.8 percent so far this year, building on last year’s rally of over 65 percent, which made it the best-performing of the Magnificent Seven.

Alphabet’s market valuation increased by nearly $1.5 trillion over 2025. Nearly at their highest level since 2021, shares are trading at about 28 times estimated earnings, which is significantly higher than their 10-year average of 20.5.

In the middle of 2025, Alphabet’s multiple dropped to almost 14. Alphabet is still trading at a small discount to the Magnificent Seven Index as a whole, despite the increase in valuation.

Additionally, Warren Buffett’s Berkshire Hathaway Inc., a tech company, provided a unique kind of validation for the company’s value credentials. disclosed in November that it had acquired a portion of Alphabet in the third quarter. The renowned investor, who is generally less exposed to tech stocks, is demonstrating confidence with this position.