Alphabet hits $4 trillion market capitalization

Alphabet, the parent company of Google, has officially entered the exclusive $4 trillion market capitalization club, joining the ranks of industry giants like Nvidia, Microsoft, and Apple. This milestone was achieved following a notable rise in Alphabet's shares, which climbed approximately 1% on Monday. The surge was fueled by Apple's announcement that it would utilize Google's Gemini as the backbone for its artificial intelligence models and the next iteration of Siri. This achievement marks a significant moment for Alphabet, especially after the company showcased remarkable growth in 2025, with shares soaring by 65%—the most substantial increase since 2009, post-financial crisis. Alphabet's stock performance has been bolstered by its strategic advancements in AI, particularly following the introduction of its custom AI chip, Ironwood, in November. This seventh-generation tensor processing unit has positioned itself as a formidable competitor to Nvidia’s offerings. In December, Google unveiled Gemini 3, which received widespread acclaim. Despite the rising competition from OpenAI's ChatGPT and Sora services, Alphabet has successfully navigated concerns regarding its innovation trajectory. Analyst Deepak Mathivanan remarked in a January 8 note that the technological advantages of the Gemini assistant—backed by Google's foundational assets—are often overlooked compared to those of ChatGPT. Citi analysts have recognized Google as a top choice for internet investments in 2026, highlighting that a significant 70% of Google Cloud customers are already utilizing its AI products. They emphasized that Google possesses the necessary chips, infrastructure, and models to meet the growing demand in the AI landscape, reinforcing the company's stronghold in the technology sector.