Key Points
- Alphabet’s market valuation briefly hit $4 trillion on Monday. The surge is driven by the success of its Gemini AI model and a renewed focus on AI.
- Apple has signed a multi-year deal to use Google’s Gemini technology for its next-generation AI models.
- Alphabet’s stock has surged 65% in 2025, outperforming its “Magnificent Seven” peers.
- The company’s cloud unit is a major growth engine, with revenue up 34% in the third quarter.
Alphabet, the parent company of Google, briefly joined the exclusive $4 trillion club on Monday. The stock hit a record high as investors cheered the company’s renewed focus on artificial intelligence, which has put it back at the forefront of the high-stakes tech race.
The latest good news for Alphabet came with the announcement that Apple’s next-generation AI models will be built on Google’s Gemini technology. This multi-year deal is a huge win for Google and a clear sign that its AI efforts are paying off. Earlier this year, it was also reported that Samsung plans to double the number of its mobile devices that use Gemini-powered AI features.
This is a remarkable turnaround for a company that many believed had lost its early AI lead. Over the past year, Alphabet’s stock has surged about 65%, outperforming all of its “Magnificent Seven” peers. The company has successfully turned its once-overlooked cloud unit into a major growth engine, with revenue jumping 34% in the third quarter.
A big part of this success has come from renting out its self-developed AI chips to other companies. The demand for these chips is so high that even rival Meta is reportedly in talks to spend billions on them for its own data centers.
Meanwhile, the new Gemini 3 model has received rave reviews, putting more pressure on OpenAI after its latest GPT-5 update left some users underwhelmed.
All of this has helped Alphabet surpass Apple in market capitalization for the first time since 2019, making it the second most valuable company in the world. It is now the fourth company to reach the $4 trillion milestone, after Nvidia, Microsoft, and Apple.
