Wall Street Rallies Behind Google as $4 Trillion Milestone Shatters Records

Monday marked a watershed moment for Alphabet, the parent company of Google, as it crossed the $4 trillion valuation threshold for the first time in its history. This achievement allowed it to surpass Apple, securing the position of the world’s second-most valuable company. Alphabet is now the fourth entity to ever reach this milestone, following in the footsteps of Nvidia, Microsoft, and Apple. The achievement underscores the market’s voracious appetite for artificial intelligence technologies and the companies that control the infrastructure behind them. The sheer scale of this valuation reflects a broader sentiment that Google has successfully pivoted to lead the next generation of computing.
The primary driver of this valuation spike is the confirmation that Apple has selected Google’s Gemini AI model to power the next iteration of Siri. This partnership is a critical endorsement of Google’s technical prowess. Apple noted in a statement that Google’s technology offered the “most capable foundation” for their needs after a careful evaluation of the market. For investors, this deal is proof that Google’s massive investments in AI are not only technologically sound but commercially viable on a massive scale. The integration of Gemini into the iPhone ecosystem promises to bring Google’s AI capabilities to hundreds of millions of users instantly.
This news has acted as rocket fuel for Alphabet’s stock, which has surged 65% throughout 2025. This performance is particularly notable because it outperforms the other members of the “Magnificent Seven” stocks. While competitors like OpenAI faced setbacks—most notably the underwhelming reception of GPT-5—Google has released a steady stream of well-received products. From the core Gemini model updates to the viral success of the Nano Banana image generator, the company has proven it can ship products that consumers want. This consistency has allayed fears of a market bubble, replacing anxiety with optimism about Google’s future trajectory.
In addition to its consumer-facing successes, Google has made significant strides in enterprise technology. Its cloud unit, once a distant third in the market, has become a juggernaut of growth, reporting a 34% revenue jump in the third quarter. The unit boasts a $155 billion backlog of sales contracts and has even drawn investment from Warren Buffett’s Berkshire Hathaway. A major factor in this success is the company’s decision to rent out its custom-built AI chips to external customers. By monetizing the hardware that powers its own services, Google has created a high-margin revenue stream that is driving the unit’s breakneck expansion.
However, the company’s massive size and influence have made it a target for regulators. Google is currently navigating the complexities of two landmark antitrust suits in the United States. While the company recently avoided a worst-case scenario when a judge ruled against a corporate breakup regarding its search monopoly, threats remain. A separate trial began in September to determine penalties for monopolizing the online ad market, which could potentially force Google to sell off parts of its advertising business. Despite these legal threats, Google’s core advertising revenue remains robust, providing a stable financial foundation as it fights these battles.