AI Driving Market Momentum
Alphabet, the parent company of Google, has officially crossed the $4 trillion valuation mark, becoming the fourth company to do so after Nvidia, Microsoft, and Apple. Investor excitement around artificial intelligence has fueled a surge in tech stock values over the past year. Alphabet’s shares have jumped roughly 75% over the last 12 months, including a nearly 7% rise since January. A key driver was Apple’s announcement that it would integrate Google’s Gemini AI model into Siri, signaling confidence in Alphabet’s ability to compete in the AI space.
Competing and Innovating in AI
After OpenAI’s ChatGPT shook up the tech world, Google doubled down with its Gemini 3 model, earning strong reviews for accuracy, multitasking with graphics and text, and enhanced coding capabilities. Alphabet’s well-funded structure gives it an advantage over start-ups like OpenAI and Anthropic, which need constant fundraising. Meanwhile, rivals such as Microsoft have launched AI features in their browsers, highlighting the intensifying race to dominate AI-enhanced digital tools.
Growth Beyond Search
Alphabet’s value comes from more than just its search engine. YouTube, Google Cloud, and Waymo all play major roles. In its latest earnings, Google Cloud revenue rose 34% to $15.2 billion, and YouTube ad revenue grew 15% to $10.26 billion. Strategic moves, such as supplying AI chips to external customers like Anthropic, have fueled cloud growth. Legal clarity in the U.S., including antitrust rulings, has also removed potential obstacles. Analysts say Alphabet’s diverse business portfolio positions it well for long-term growth, even as investors weigh high valuations against earnings expectations.
