Alphabet Joins $3 Trillion Club as Shares Surge on AI Bets
The tech giant now ranks alongside Nvidia, Microsoft, and Apple in the $3 trillion club.
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[Image source: Chetan Jha/MITSMR India]
Alphabet, the parent firm of Google, crossed the $3 trillion market capitalization mark on Monday, becoming the fourth publicly traded US firm to reach that valuation.
The Google owner now stands in the company of Apple, Microsoft and Nvidia, with the latter leading that group with a market cap above $4 trillion.
Shares of Alphabet have seen a more-than-30% gain so far this year, significantly outpacing the S&P 500’s 12.5% rise and the Nasdaq’s 15% gain.
Both its Class A and Class C shares hit record highs, up around 3.6% and 3.4%, respectively, on Monday.
Investor sentiment was boosted by an antitrust court ruling that let Alphabet retain control of its Chrome browser and Android OS, easing fears of a forced divestiture.
Some analysts said the ruling will deepen Alphabet’s partnership with Apple and potentially integrate its Gemini AI into future iPhones.
Meanwhile, the company’s cloud division posted a nearly 32% jump in second-quarter revenue, helped by investment in its in-house chips and the Gemini AI model.
Analysts at Citi lifted their price target for Alphabet shares to $280, citing improving regulatory clarity and growing optimism around AI’s role in its advertising, cloud, and broader product ecosystems.
The milestone comes about 20 years after Google’s IPO and more than a decade since Alphabet’s creation as the holding company.
Technology and AI-linked stocks have propelled Wall Street’s main indexes to a record high amid growing hopes of an interest rate cut by the US Federal Reserve on Wednesday.
