Google Hits $4 Trillion Valuation, Cementing Its Status as the “King of AI”
The rally caps an extraordinary year: in 2025, Alphabet shares climbed roughly 65%, outperforming many other large technology companies.
Quick overview
- Alphabet, Google's parent company, surpassed a market capitalization of $4 trillion for the first time, driven by investor confidence in its AI strategy.
- The company's shares rose significantly, reflecting a 65% increase over the year, outperforming many other tech giants.
- A strategic partnership with Apple to integrate Google's AI technology into iPhone features further validated Alphabet's leadership in AI.
- Alphabet's growth is also supported by strong performance in digital advertising and cloud services, alongside a favorable regulatory outlook.
A key factor behind Google’s surge was investor confidence in the company’s advances in artificial intelligence.
Alphabet, Google’s parent company, reached a historic milestone in financial markets this week by surpassing a market capitalization of more than $4 trillion for the first time, fueled by renewed investor optimism centered on its artificial intelligence (AI) strategy.
With this achievement, Alphabet joins a select group of technology giants—such as Nvidia, Microsoft, and Apple—that have crossed the $4 trillion threshold, although in some cases valuations have fluctuated since then.
Google jumps on Wall Street
Alphabet shares rose as much as 1.7%, trading near $334 per share and pushing the company’s total market value to around $4.01 trillion.
Although the stock later declined to $332, the milestone was already set. The rally caps an extraordinary year: in 2025, Alphabet shares climbed roughly 65%, outperforming many other large technology companies known as the “Magnificent Seven.”
Investor confidence in the company’s AI progress was a decisive driver of the move.
Alphabet has strengthened its position in the global AI race through upgrades to its Gemini 3 model, which received strong reviews, a renewed focus on Google Cloud as a key growth engine, and initiatives to offer AI chips to third parties.
Powerful partnerships
Another major catalyst was Alphabet’s strategic partnership with Apple. The iPhone maker announced a multi-year agreement to integrate Google’s AI technology—including the Gemini family of models—into iPhone features such as Siri, marking a significant collaboration between two of the world’s largest technology companies.
Markets viewed this move as a strong validation of Alphabet’s technology and leadership in AI.
In addition, Alphabet’s AI momentum has been supported by solid performance in other core businesses, including digital advertising and cloud services, as well as a clearer regulatory outlook following a major U.S. court ruling that avoided a forced breakup of its core operations.
With this milestone, Alphabet not only cements its position as one of the world’s most valuable companies, but also highlights how artificial intelligence has become the primary driver of growth and valuation across the modern technology sector.
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