Alphabet Nears $4 Trillion Valuation After Google Shares Hit Record High
Alphabet, the parent company of Google, is closing in on a historic milestone as its market valuation approaches $4 trillion. The tech giant ended Monday with a market cap of $3.82 trillion, boosted by a more than 5% surge in share price to a new record high of $315.90.
This rapid ascent places Alphabet on track to become only the fourth company in history to hit the $4 trillion mark, joining Nvidia, Microsoft, and Apple. Currently, only Nvidia and Apple remain above that threshold.
AI and Cloud Growth Fuel Alphabet’s Momentum
Alphabet’s explosive performance in 2025 has been powered by two major forces:
1. A booming cloud business
Google Cloud continues to see strong enterprise adoption, solidifying its place as one of Alphabet’s fastest-growing revenue streams.
2. Strong positioning in the AI race
The launch of Google’s Gemini 3 has strengthened the company’s competitiveness in artificial intelligence, drawing investor confidence and boosting market optimism around future AI-driven revenue.
With shares climbing nearly 70% in 2025, outpacing rivals Microsoft and Amazon, Alphabet remains one of the market’s top-performing AI stocks this year.
Investor Confidence Boosted by Berkshire Hathaway
Market analysts say part of the stock rally was driven by renewed confidence linked to Berkshire Hathaway’s stake in Alphabet.
According to Steve Sosnick, Chief Market Analyst at Interactive Brokers, Berkshire’s involvement has fueled investor enthusiasm, even though Warren Buffett likely had no direct role in the purchase.
“The market is still in the mindset that anything Berkshire does is worth emulating, and to be fair, that’s worked for a long time,” Sosnick said.
Experts also highlight Alphabet’s advantage in developing in-house AI chips, offering a cost-effective alternative to Nvidia’s expensive processors, further strengthening investor conviction.
Legal Victory Reinforces Alphabet’s Market Strength
Alphabet’s momentum comes shortly after a major win in its long-running antitrust battle with the U.S. government. In a September 2 ruling, a federal judge rejected the demand that Google divest its Chrome browser, though new requirements were imposed to enhance competition in search.
The verdict followed an earlier ruling in August 2024, where Judge Amit Mehta found that Google monopolised search through exclusive multi-billion-dollar distribution deals.
For Alphabet, avoiding a forced Chrome sell-off was a major relief, one that boosted market confidence and protected a core part of its ecosystem.
Google’s Vice President of Regulatory Affairs, Lee-Anne Mulholland, said the decision validates Google’s position that competition in the tech industry remains strong, especially as AI reshapes user behaviour and platform choices.
A Defining Moment for Alphabet
Analysts describe the recent ruling as one of the most significant antitrust decisions in two decades. A forced breakup could have dramatically altered Google’s future, but instead, Alphabet emerges stronger at a time when its AI and cloud businesses are accelerating.
With investor confidence rising, AI innovations gaining traction, and legal risks easing, Alphabet now stands on the verge of joining the world’s most elite corporate club, the $4 trillion valuation tier.
