Alphabet (GOOGL-US) has reasserted itself as a central player in the artificial intelligence race, with its stock surging more than 6% on Monday to a record high of $318.58. The rally pushed its market capitalization to $3.84 trillion, just shy of the $4 trillion milestone. If achieved, Alphabet would become the fourth company globally to cross that threshold, joining Nvidia, Microsoft, and Apple—though only Nvidia and Apple currently sustain valuations above that level.
Since the start of 2025, Alphabet’s shares have climbed nearly 70%, outpacing rivals Microsoft and Amazon and signaling renewed investor confidence in its AI strategy.
Dual Engines: Cloud and AI
Analysts attribute the surge to two structural drivers:
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Google Cloud has transformed from a laggard into a growth engine, attracting fresh investment—including from Berkshire Hathaway, a move widely seen as a market endorsement.
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The launch of Gemini 3, Alphabet’s next-generation generative AI model, has earned strong reviews and bolstered its competitive standing.
Steve Sosnick, Chief Market Strategist at Interactive Brokers, noted that Berkshire’s entry carries symbolic weight. "When Berkshire buys, investors should follow," he said, highlighting the enduring influence of Buffett’s brand even if he wasn’t directly involved in the decision.
Building a Durable Moat
Alphabet’s resilience amid broader tech corrections stems from its stable cash flow, proprietary TPU chips, and unmatched search data resources. Together, these assets form a durable moat that analysts believe positions the company to capture long-term AI opportunities.
The stock’s climb is also interpreted as a broader signal: funds are flowing back into leading tech names, and confidence in AI applications is warming the overall investment climate.
Risks Linger
Not all voices are bullish. Some executives warn that if AI commercialization slows, Alphabet’s lofty valuation could face pressure. Concerns also linger about speculative trading, particularly given the close ties between OpenAI and Nvidia, which some argue may be inflating sector valuations.
The Bottom Line
Alphabet’s near-$4 trillion market cap underscores its transformation from an AI laggard to a frontrunner. With cloud growth accelerating and Gemini 3 strengthening its position, the company has rekindled enthusiasm among investors.
Still, risks remain. High valuations and questions about the pace of AI adoption could temper gains. For now, though, Alphabet’s momentum suggests it is firmly back in the race—and investors are betting it has the tools to stay there.