Google parent Alphabet just became the fourth-ever company to hit US$3 trillion in market value
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Alphabet shares rode to a record on renewed optimism around artificial intelligence and a favourable antitrust ruling.
PHOTO: REUTERS
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CHICAGO – Alphabet on Sept 15 joined an elite group of companies valued at more than US$3 trillion (S$3.8 trillion), riding renewed optimism around artificial intelligence (AI) and a favourable antitrust ruling.
Its shares rose 4.3 per cent to US$251.76, resulting in a market capitalisation of US$3.05 trillion. The stock has soared more than 70 per cent from its April low, adding roughly US$1.2 trillion in value over that span.
Alphabet joined other tech giants Apple and Microsoft in hitting a US$3 trillion valuation, while AI chipmaker Nvidia – the world’s most valuable company – boasts a market cap of US$4.25 trillion.
Technology and AI-linked stocks have powered Wall Street’s main indexes to record highs amid growing hopes that the US Federal Reserve will cut interest rates later this week.
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Ms Kim Forrest, chief investment officer at Bokeh Capital Partners, said 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”.
The communications services sub-sector – which houses Alphabet – has jumped more than 26 per cent so far in 2025, making it the best-performing sector among the 11 major sub-indexes, with information technology in second place.
Investor sentiment received a boost after a US court earlier in September allowed Alphabet to retain control of its Chrome browser and Android mobile operating system, marking a pivotal moment for the company, whose dominance in search and mobile ecosystems has long drawn scrutiny.
While sharing data as part of the ruling will strengthen rivals to Google’s advertising business, not having to divest Chrome or Android removes a major concern for investors who view them as key pieces of Google’s overall business.
In July, the company’s cloud computing unit delivered an almost 32 per cent jump in second-quarter revenue, surpassing expectations as investments in in-house chips and the Gemini AI model began to pay off.
Mr Dennis Dick, chief strategist at Stock Trader Network, said: “They still are very dependent on search, but with YouTube, Waymo and other capabilities and products they’re working on, investors are starting to see the possibility that this isn’t just a search company any more. This is a company that’s moving into a lot of other things.”
Alphabet trades at around 23 times its forward earnings – the lowest among the “Magnificent 7” – compared with its five-year average of 22, according to data compiled by LSEG. REUTERS, BLOOMBERG
