(Jan 13): Alphabet Inc broke above a US$4 trillion market capitalisation on Monday, becoming one of the few companies to ever cross the threshold as investors increasingly see the Google parent as one of the biggest winners of the artificial intelligence (AI) boom.
Shares rose as much as 1.7% to US$334.04, translating to a market cap of US$4 trillion. The company recently overtook Apple Inc to become the second-largest firm, behind Nvidia Corp. Only Nvidia, Apple, and Microsoft Corp have topped the US$4 trillion barrier, and Nvidia remains the lone company to ever crest US$5 trillion.
Monday’s gain came after CNBC reported that Apple had picked the company’s Gemini to run an AI-powered version of its Siri digital assistant. In November, Bloomberg News reported that Apple was planning to pay Alphabet about US$1 billion a year for an AI Siri.
The stock has risen 4.8% so far this year, building on last year’s rally of more than 65%, which made it the top performer among the Magnificent Seven. The gain over 2025 added almost US$1.5 trillion to Alphabet’s market valuation.
The rapidly improving sentiment reflects of Alphabet is seen as having dominant positions across key areas of AI. Notably, rave reviews for the company’s latest Gemini AI model helped ease concerns about competition from companies like OpenAI, while its tensor processing unit chips are seen as a potentially significant driver of future revenue growth.
See also: Nvidia to invest US$1 bil in AI drug lab with Eli Lilly
“The company’s competitive advantages are not only intact but growing, and no other player has the models, compute, applications, talent, and data to succeed in AI,” said Divyaunsh Divatia, research analyst at Janus Henderson Investors. “It is certainly being seen as a big AI winner, and that strength helps investors feel more comfortable giving it a more-premium valuation than it previously got.”
Shares trade around 28 times estimated earnings, nearly their highest since 2021 and notably above their 10-year average of 20.5. Alphabet’s multiple fell to nearly 14 in mid-2025.
Despite the swelling in valuation, Alphabet continues to trade at a slight discount to the overall Magnificent Seven Index.
See also: Data centres will need US$3 tril through 2030, says Moody’s
The company’s value credentials also got a rare form of validation for a tech company, as Warren Buffett’s Berkshire Hathaway Inc revealed in November that it had built a stake in Alphabet during the third quarter. The position represents a show of confidence from the legendary investor, who is typically less exposed to tech stocks.
Uploaded by Felyx Teoh
