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Google parent Alphabet Inc. has reached a historic milestone, hitting a US$3 trillion market capitalisation for the first time on Monday. The surge was powered by renewed investor optimism around artificial intelligence (AI) and a favourable antitrust ruling that removed lingering regulatory uncertainties.
Alphabet’s Class-A shares rose 3.8% to $250, while Class-C shares gained 3.7% to $250.40, both closing at record highs. With the latest rally, the company’s stock has advanced more than 32% year-to-date, outperforming the S&P 500’s 12.5% gain and leading the so-called “Magnificent 7” tech stocks.
By crossing the $3-trillion threshold, Alphabet joined Apple and Microsoft in the elite club of mega-cap tech companies, though AI chipmaker Nvidia remains the world’s most valuable company with a market cap of $4.25 trillion.
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The gains came as technology and AI-linked stocks continue to fuel Wall Street’s broader rally, bolstered by expectations that the U.S. Federal Reserve could cut interest rates later this week. Oracle’s upbeat forecast last week also reinforced bullish sentiment around AI demand.
“Tech stocks have been the leaders of the recent rally, and there has been no other sector in the past 18 months, maybe even two years, that has had such excitement from investors,” said Kim Forrest, CIO of Bokeh Capital Partners.
The communications services subsector, home to Alphabet, has jumped more than 26% so far in 2025, making it the best-performing among the 11 major S&P sub-indices, with IT in second place.
Investor confidence was further boosted earlier this month when a U.S. court ruled that Alphabet could retain control of its Chrome browser and Android mobile operating system, a pivotal decision after years of antitrust scrutiny. While the ruling requires Google to share some data with rivals, avoiding a forced breakup of Chrome or Android reassured markets about the company’s long-term dominance in search and mobile ecosystems.
Alphabet’s fundamentals have also impressed. In July, its cloud unit reported a 32% surge in Q2 revenue, exceeding analyst forecasts, as investments in in-house chips and its Gemini AI model began to pay off.
“They still are very dependent on search, but with YouTube, Waymo, and other capabilities and products, investors are starting to see that this isn’t just a search company anymore. This is a company that’s moving into a lot of other things,” said Dennis Dick, chief strategist at Stock Trader Network.
Despite the rally, Alphabet trades at around 23 times forward earnings, slightly above its five-year average of 22x, but still the lowest valuation multiple among the “Magnificent 7”—a factor that may continue to attract value-focused investors.
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