Alphabet reaches market capitalisation of $4 trillion

Share price rose by 65% in 2025, thanks to strategic moves in AI and dealing with regulatory challenges

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Alphabet’s market capitalisation reached $4 trillion dollars (around €3.4 trillion) on Monday after a rise in its share price. That milestone makes Alphabet the fourth company to achieve this impressive valuation, alongside Nvidia, Microsoft and Apple. Although both Nvidia and Microsoft crossed the $4 trillion dollar threshold for the first time in July, with Apple following in October, Microsoft and Apple have since slipped back below that level.

Alphabet’s remarkable success can be attributed to its outstanding performance in 2025, with shares up 65%. That is the biggest increase since 2009, when the shares doubled after the financial crisis. This revival has been fuelled by Alphabet’s strategic moves in the field of artificial intelligence (AI).

Last year, Alphabet successfully tackled major regulatory challenges and unveiled Ironwood, its seventh-generation tensor processing unit, a custom AI chip that offers an attractive alternative to Nvidia’s products. In December, the company introduced Gemini 3, an advanced AI model that has been widely acclaimed.

Despite increasing competition from OpenAI’s ChatGPT and Sora services for consumers’ attention, Alphabet has effectively dispelled concerns about its capacity to innovate. Analysts have voiced confidence in Alphabet’s future prospects, pointing to the technological advantages of the Gemini assistant app over ChatGPT.

Citi analysts have named Google their top Internet pick for 2026. They highlight the broad adoption of its AI products among Google Cloud customers and emphasise the company’s strong position in the AI technology stack, thanks to ten years of investment.

Business AM

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