Google’s parent company Alphabet has reached a historic milestone by crossing a $4 trillion market capitalization. Powered by rapid growth in artificial intelligence and cloud computing, the company has now overtaken Apple to become the world’s second most valuable firm.
Alphabet, the parent company of Google, has once again become the center of attention in global tech markets after achieving a market capitalization of $4 trillion. With this milestone, Alphabet has become the world’s second most valuable company, overtaking Apple after several years. This rally is not just about rising share prices, but a result of Alphabet’s transformed focus on artificial intelligence (AI) and cloud computing. The company is led by CEO Sundar Pichai, who is of Indian origin.
Alphabet shares have seen a massive rally over the past year. In 2025 alone, the stock rose by nearly 65 percent, and the momentum has continued into early 2026. Among the “Magnificent Seven” technology giants, Alphabet has now emerged as the best-performing company. Investors are increasingly confident that Alphabet is regaining a strong lead in the global AI race.
Until recently, there were concerns that Alphabet was losing its early advantage in artificial intelligence. That perception has now completely changed. The Gemini 3 model has received strong reviews from the market and is widely seen as delivering better responses than OpenAI’s GPT-5. Samsung has chosen Gemini as the AI engine for its mobile devices, which means billions of users will soon access Gemini directly.
At the same time, Google has begun renting out its custom AI chips, called TPUs (Tensor Processing Units), to external companies. Firms such as Meta are in talks for large deals, which could create a powerful new revenue stream for Alphabet.
Along with AI, Google Cloud has become a major pillar of Alphabet’s growth story. In the most recent quarter, cloud revenue grew by about 34 percent, and the backlog has reached $155 billion, indicating strong future earnings visibility. This shows that Alphabet is no longer just an advertising company — it is rapidly becoming a major player in enterprise technology and AI infrastructure. As a result, investor sentiment has turned far more positive.
Alphabet also received significant relief in the long-running US antitrust case. The court rejected demands to break up the company, allowing Alphabet to retain control over Chrome and Android. This ruling removed a major uncertainty hanging over the company’s future.
At the same time, Warren Buffett’s Berkshire Hathaway has invested in Alphabet — a rare move in the tech sector. This has sent a strong signal to the market that Alphabet’s valuation is supported by solid fundamentals, not just AI hype.
With Alphabet entering the $4 trillion club, it now joins companies like Nvidia, Microsoft, and Apple. Overtaking Apple highlights how strongly the market is currently valuing AI and cloud-driven growth. Alphabet’s advertising business remains stable and continues to generate strong cash flows despite economic uncertainty. Combined with rapid growth in AI and cloud, Alphabet is now positioned on a high-growth path for the coming years, and new valuation records are expected in 2026.