Alphabet Inc., the parent company of Google, crossed the $3 trillion market capitalisation mark for the first time on Monday, becoming the fourth U.S. company to achieve the milestone after Apple, Microsoft, and Nvidia.
Shares of Alphabet rose more than 3% in intraday trading, following renewed investor optimism around the company’s artificial intelligence (AI) strategy and a favourable outcome in a key U.S. antitrust case.
The company’s Class A shares closed at a record high of $250.31, while Class C shares also saw similar gains. Alphabet’s stock is now up over 30% year-to-date, outperforming the S&P 500, which has risen approximately 12% in the same period.
Investor sentiment has been buoyed by Alphabet’s growing presence in AI. Its flagship large language model, Gemini, has been integrated into key consumer-facing products such as Google Search, Gmail, Docs, and YouTube. The company is also expanding Gemini’s enterprise offerings through Google Cloud, which continues to report double-digit revenue growth. The cloud division, once seen as a laggard behind Amazon Web Services and Microsoft Azure, has gained ground thanks to increasing enterprise adoption of AI tools and infrastructure.
The rally was further supported by a recent legal win in the United States, where a federal court ruled against calls to break up core Google services such as the Chrome browser and Android operating system. The decision was seen as a significant relief for Alphabet, which has faced escalating regulatory scrutiny globally, particularly in the European Union.
Analysts say the ruling reduces near-term legal risks and allows the company to focus on product development and market expansion without the threat of major structural reforms.
While the $3 trillion valuation marks a major milestone for the tech giant, market analysts remain cautious about future challenges. These include intensifying competition in the AI sector from rivals such as OpenAI, Amazon, and Meta, as well as regulatory headwinds in international markets.
“Alphabet’s leadership in AI and cloud is undeniable, but the market is still watching how effectively the company can monetise its AI investments at scale,” said a senior tech analyst at Bernstein.
Alphabet was founded in 2015 as part of a corporate restructuring of Google. It now oversees a portfolio of companies spanning digital advertising, cloud services, autonomous vehicles (Waymo), life sciences (Verily), and advanced AI research (DeepMind).
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