Alphabet, Google’s parent company, reached a market capitalization of $3 trillion for the first time last week. This milestone was driven by renewed investor optimism around artificial intelligence and a recent favourable antitrust ruling.
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Both Class-A and Class-C shares climbed to record highs, with gains of nearly 4%. This rally has pushed Alphabet’s stock up more than 32% this year, making it the best-performing company among the “Magnificent 7” tech stocks. It now joins other tech giants, including Apple and Microsoft, in the $3 trillion club, while AI chipmaker Nvidia remains the world’s most valuable company with a market cap of $4.25 trillion.
Investor confidence in Alphabet has been boosted by a recent U.S. court decision that allows the company to retain control of its Chrome browser and Android mobile operating system. This ruling has removed a major concern for investors, who view these products as essential to Google’s business. While the ruling requires Google to share some data, which could benefit competitors, it protects the core assets that have long been a source of legal scrutiny.
The company’s success is also linked to its strong performance in AI. In July, Google’s cloud computing unit reported a nearly 32% jump in second-quarter revenue, exceeding expectations. This growth suggests that the company’s significant investments in its in-house chips and the Gemini AI model are beginning to pay off.
According to analysts, investors are starting to see Alphabet as more than just a search company. With successful ventures like YouTube and Waymo, in addition to its new AI products, the company is diversifying its portfolio, fuelling excitement and growth in the market.
