Alphabet Joins USD 3 Trillion Club on AI Optimism and Antitrust Win The company's market performance this year has been remarkable, with its stock advancing over 32 per cent in 2025, making it the best performer among the so-called "Magnificent 7" technology firms
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Alphabet, the parent company of Google, has crossed the USD 3 trillion market capitalisation mark for the first time, driven by strong investor optimism around artificial intelligence (AI) and a favourable ruling in a U.S. antitrust case. On Monday, its Class A shares climbed 3.8 per cent to USD 250, while Class C stock rose 3.7 per cent to USD 250.4, both touching all-time highs.
The company's market performance this year has been remarkable, with its stock advancing over 32 per cent in 2025, making it the best performer among the so-called "Magnificent 7" technology firms and comfortably beating the S&P 500's 12.5 per cent gain. Alphabet now sits alongside Apple and Microsoft at the USD 3 trillion level, while Nvidia remains ahead with a USD 4.25 trillion valuation.
The surge in Alphabet's value reflects a broader rally in technology and AI-driven stocks, underpinned by expectations of a potential U.S. Federal Reserve interest rate cut later this week. Positive guidance from Oracle last week also reinforced investor sentiment in the AI sector.
Kim Forrest, chief investment officer at Bokeh Capital Partners, noted that technology has been the only sector capturing consistent excitement from investors over the past 18 to 24 months. Within the U.S. market, the communications services sub-index, which includes Alphabet, has risen more than 26 per cent this year, the strongest showing among major sectors, followed by information technology.
Investor confidence also received a boost after a U.S. court ruled in Alphabet's favour, allowing it to retain control of both its Chrome browser and Android operating system. The decision, while requiring some data sharing with competitors, removed the threat of a forced breakup that had long been a concern for shareholders.
In addition, Alphabet's diversification strategy continues to pay off. Its cloud computing arm reported a 32 per cent increase in revenue during the second quarter, helped by investment in its in-house semiconductor projects and the rollout of its Gemini AI model.
Analysts point out that while search remains its core business, Alphabet is increasingly seen as a multi-faceted technology company, with YouTube, Waymo, and cloud services expanding its growth horizon. Currently trading at around 23 times forward earnings, slightly higher than its five-year average of 22, the stock still remains the least expensive among the Magnificent 7, making it an attractive bet for investors seeking exposure to AI-led growth.
