Nvidia, Microsoft, and Apple have reached $4T in the past, but only Nvidia and Apple still hold that mark
Shares rose more than 5% to $315.9, raising the company’s market value to $3.82 trillion. PHOTO: REUTERS
Alphabet closed at a $4 trillion valuation on Monday, set to become only the fourth company to enter the exclusive club as Google’s parent company leads an AI-driven rally.
The company’s shares rose more than 5% to a record high of $315.9, giving it a market capitalization of $3.82 trillion. The stock is up nearly 70% so far this year, far outperforming AI rivals Microsoft and Amazon.com.
Nvidia, Microsoft and Apple were previously valued at $4 trillion. Only Nvidia and Apple remain on the list.
The rise reflects a dramatic reversal in sentiment toward Alphabet after some investors feared the company had lost its AI advantage to OpenAI following the launch of ChatGPT in 2022, even though it invented much of the underlying technology behind genetic AI.
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Alphabet regained momentum this year by turning its once-successful cloud business into a key growth driver, drawing in Warren Buffett’s Berkshire Hathaway as an investor and winning strong early reviews for its new Gemini 3 model.
Steve Sosnick, chief market analyst at Interactive Brokers, said Berkshire’s stake was a key draw for investors.
“While it’s doubtful that Warren Buffett had any role in this market … the market still believes that anything Berkshire does is worth emulating, and to be fair, that has worked for a long time,” Sosnick said.
Google shares also rose as Big Tech appeared in recent months largely unscathed by the bipartisan antitrust push that began in US President Donald Trump’s first term.
The company avoided a forced sale of its Chrome browser after a court found its search business was an illegal monopoly, but stopped short of ordering a breakup.
But the milestone may stoke fears of rising valuations that some traders warn have distracted market movements from business fundamentals, fueling concerns of a bubble reminiscent of the dot-com boom of the 1990s.
A wave of circular deals involving OpenAI and Nvidia — two of the companies at the center of the artificial intelligence boom — also fueled fears.
But analysts said Google is well-positioned in the AI race, thanks to its strong cash flow, in-house chips that serve as an alternative to expensive Nvidia processors and a massive Internet search business that already benefits from integrating AI.
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