This article first appeared on GuruFocus.
Alphabet (GOOGL, Financials) touched a $4 trillion valuation, marking a historic milestone for the Google parent as renewed confidence in its artificial intelligence strategy fueled a surge in investor optimism.
The companys stock climbed as much as 1.7% to a record $334.04 after announcing that Apples next generation AI models will run on Googles Gemini technology under a new multi-year partnership. Samsung also plans to double the number of its devices using Gemini-powered AI this year, according to recent reports.
The rally caps a dramatic turnaround for Alphabet, whose shares jumped 65% in 2025 the strongest performance among the Magnificent Seven tech stocks. The rebound came as the company transformed its once-overlooked Google Cloud unit into a major growth driver and attracted a rare investment from Warren Buffett (Trades, Portfolio)s Berkshire Hathaway.
Google Cloud revenue grew 34% in the third quarter, with a backlog of unrecognized contracts reaching $155 billion. Analysts say renting out Googles AI chips to outside customers has further accelerated its momentum.
The companys core ad business has also held steady despite economic headwinds and rising competition. Alphabet now joins Nvidia, Microsoft, and Apple as the only companies to have crossed the $4 trillion mark.
Investors view the milestone as a sign that Alphabets AI strategy centered on Geminis rapid expansion is paying off, setting the stage for another strong year in 2026.
https://finance.yahoo.com/news/alphabet-tops-4-trillion-ai-175514217.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAABT3ia0lKqWE5chj_nEf6Pj2s6ilrq9QfSX-Q_p7aLXSJ_zIA4xCNweTCmv4A9OsQZjsClN1ATqmQ_xndnYUGHvBgadxA7Qi3DhncUhN821V3vfpX4osGfnRGroNUG9N5Y4FMITGA8lfaxeyjgzRcZZF0NqZEurDxaBhNO6xqAK0
