Alphabet hits $4 trillion valuation, overtakes Apple as AI bet pays off

Alphabet just pulled off one of the biggest comeback stories on Wall Street.

On Monday, Google’s parent company crossed the $4 trillion market cap, a milestone that places it among the most valuable corporations in history. Two days later, it went a step further, overtaking Apple in market value for the first time since 2019 and claiming the No. 2 spot globally. Only Microsoft sits higher.

The surge caps a dramatic shift in investor mood. Alphabet’s stock climbed about 65% in 2025, outpacing the rest of Wall Street’s so-called Magnificent Seven, Reuters reported. It has kept that momentum this year, adding another 6%, with shares still inching higher in recent sessions.

Three months ago, Nvidia became the first company to reach a $5 trillion valuation, riding the AI frenzy sweeping markets. Alphabet’s move shows that the rally isn’t slowing down. Big tech’s AI bets are reshaping balance sheets and rewriting rankings.

What changed for Alphabet? For starters, it quieted a growing chorus of critics who feared the company had squandered its early AI lead. The biggest surprise came from Google Cloud, which had once been an afterthought within the business. That unit is now a serious growth engine. Revenue jumped 34% in the third quarter, and its backlog of contracted but unrecognized sales ballooned to $155 billion.

Alphabet also made a bold move by renting out its homegrown AI chips, which had been reserved for internal use. Opening them to external customers sparked new demand and generated additional revenue. Signs of that demand are stacking up. The Information reported that Meta is in talks to spend billions on Alphabet’s chips for its data centers starting in 2027.

On the product side, the launch of Gemini 3 has drawn strong reviews. The model has put pressure on OpenAI after GPT-5 left some users unimpressed. Reuters also reported that Samsung plans to double the number of phones this year powered by Gemini, giving Google’s AI a larger footprint among consumers.

Alphabet even landed a rare tech investment from Warren Buffett’s Berkshire Hathaway, a move that turned heads across the market. Buffett has historically been cautious about big tech, so his backing carries weight.

Meanwhile, the company’s ad business, still its main cash machine, hasn’t cracked under economic pressure. Revenue has held steady despite fierce competition and shaky consumer spending. That stability gives Alphabet a financial cushion while it pushes deeper into AI infrastructure.

Legal relief helped too. A U.S. judge ruled in September against breaking up the company, allowing it to keep control of Chrome and Android. That decision removed a major overhang on the stock.

Alphabet now joins Nvidia, Microsoft, and Apple in the exclusive $4 trillion club. The message from investors is clear: Google’s AI pivot is no longer a question mark. It’s a core growth story, and Wall Street is buying it.