New Record for GOOG Stock as Apple Chooses Google for Gemini, Value Soars to $4 Trillion
After a temporary stabilization around record highs, Alphabet shares have resumed their surge as partnerships and platform developments...
Quick overview
- Alphabet shares have resumed their upward trend after a brief consolidation, reaching new all-time highs driven by AI partnerships and platform advancements.
- A significant agreement with Apple to integrate Google's Gemini AI into Siri enhances Alphabet's consumer-facing AI presence and validates its investment in AI technology.
- Despite competitive pressures and regulatory scrutiny, Alphabet's strong institutional backing and ongoing growth in advertising and cloud services support its long-term outlook.
- The rollout of Gemini 3 highlights Alphabet's vertical integration strategy, aiming to optimize AI performance while managing execution risks.
After a temporary stabilization around record highs, Alphabet shares have resumed their surge as partnerships and platform developments enhance long-term optimism.
Record Highs Follow a Period of Consolidation
Alphabet’s powerful late-2025 rally temporarily stalled as investors reassessed intensifying AI competition and renewed regulatory scrutiny. For more than a month, the stock hovered near record levels, digesting gains rather than extending them. That pause has now given way to renewed momentum.
On Monday, Alphabet shares pushed to fresh all-time highs, lifting the company’s market capitalisation to roughly $4 trillion. The move followed confirmation of a multi-year agreement under which Apple will integrate Google’s Gemini AI models into a redesigned version of Siri, marking a meaningful expansion of Alphabet’s consumer-facing AI footprint.
In midday New York trading, Alphabet Class A shares climbed to around $334, reinforcing the view that the recent consolidation served as a reset rather than a reversal.
Apple Partnership Elevates Gemini’s Real-World Reach
The agreement with Apple represents more than a symbolic endorsement. By embedding Gemini into Siri, Google’s AI technology gains direct access to one of the world’s largest installed bases of consumer devices. That integration moves Alphabet’s AI strategy beyond demonstrations and benchmarks into daily, large-scale usage.
For investors, the deal provides tangible evidence that Alphabet’s significant AI spending is translating into adoption. It also strengthens the company’s ability to cross-sell developer tools and cloud services to teams building on top of Gemini-powered features.
At a time when markets are increasingly focused on monetisation rather than model performance alone, the partnership offers a clear validation of Alphabet’s approach.
November Breakout Set the Stage
Alphabet was already among the strongest megacap performers late last year. In November, the stock delivered a decisive breakout, clearing the $300 level and rallying to a then-record high near $329. That move capped a sharp rebound from a late-September pullback and re-established confidence in the company’s growth trajectory.
The advance was driven by steady institutional accumulation and optimism surrounding Google’s AI roadmap. Alphabet’s dual exposure to digital advertising and artificial intelligence positioned it uniquely as investors sought scale, data, and distribution in a rapidly evolving technology landscape.
While momentum cooled in early December, the broader trend remained intact, setting the stage for the renewed advance seen in January 2026.
Uptrend Holds Despite a Slower Rhythm
From a technical standpoint, Alphabet’s chart continues to reflect underlying strength. Although shares briefly slipped below short-term averages during last week’s consolidation, buyers quickly stepped in, allowing the stock to reclaim the 20-day moving average.
GOOGL Chart Daily – The Uptrend Has Resumed
The shares remain well above medium- and long-term trend indicators, signalling that the dominant uptrend is still in place. Moving averages have struggled to catch up with price action, underscoring the persistence of demand even as the pace of gains moderates.
Rather than signalling exhaustion, the recent price behaviour suggests controlled consolidation within a broader advance.
Gemini 3 Highlights Vertical Integration Strategy
Investor attention has also turned to Alphabet’s evolving AI infrastructure strategy. The rollout of Gemini 3—trained primarily on Google’s in-house chips rather than external hardware—has reignited debate around vertical integration.
Supporters argue that controlling both the model layer and the underlying hardware could deliver long-term cost advantages, tighter optimisation, and reduced dependence on third-party suppliers. Reports that Gemini 3 has outperformed competing models in select benchmarks have reinforced that view and intensified competitive pressure across the sector.
Skeptics, however, note that vertical integration carries execution risk and requires sustained investment before efficiencies become visible. Even so, the initiative highlights Alphabet’s ambition to own more of the AI value chain, a strategy that could strengthen its competitive moat over time.
Competition Keeps Pressure on Valuations
The broader AI landscape remains highly competitive. The release of OpenAI’s GPT-5.2 reminded markets that leadership in generative AI is far from settled. OpenAI’s focus on enterprise automation, coding tools, and productivity applications overlaps directly with Google’s Workspace ecosystem.
That overlap has heightened investor sensitivity to competitive dynamics, particularly as valuations across AI-related equities remain elevated. For Alphabet, the challenge is less about relevance and more about sustaining differentiation as rivals rapidly narrow performance gaps.
The market’s response suggests that Alphabet retains credibility, but expectations are becoming more demanding.
Regulatory Scrutiny Re-Enters the Conversation
Regulatory risk has also resurfaced. A coordinated warning from U.S. state attorneys general to major technology firms regarding AI-powered chatbots underscored growing concern around safety, transparency, and consumer protection.
Alphabet is no stranger to regulatory oversight, but the expansion of scrutiny into AI governance introduces additional uncertainty. Potential compliance costs and operational constraints may not be immediate, but they remain an important consideration as investors reassess long-term valuations.
Insider Activity Draws Brief Attention
Near-term sentiment was briefly tempered by disclosures of insider selling. CEO Sundar Pichai reported selling just over 32,000 shares shortly after Alphabet reached new highs. While such sales are typically pre-planned, the timing naturally attracted attention.
Market reaction was muted, suggesting investors viewed the move as routine rather than a signal of concern. Still, it reinforced the idea that some consolidation was reasonable after a strong run.
Institutional Backing Anchors the Long-Term Case
Balancing near-term caution is continued support from long-term investors. Berkshire Hathaway’s disclosure of a nearly $5 billion Alphabet position earlier in the quarter reaffirmed confidence in the durability of the company’s core businesses.
Strong cash generation from advertising and steady growth in cloud services provide a foundation that allows Alphabet to invest aggressively in AI while maintaining financial flexibility. For many investors, that combination continues to justify premium valuation as the company enters the next phase of its growth cycle.
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