Alphabet is on track to achieve a $4 trillion market value driven by artificial intelligence | Companies

The company’s shares rose more than 5% to a record high of $315.90, giving it a market value of $3.82 trillion. Shares are up nearly 70% so far this year, far outpacing rivals Microsoft and Amazon.com. Nvidia, Microsoft, and Apple were previously valued at $4 trillion. Only Nvidia and Apple remain on the list.

Alphabet’s valuation reflects a stunning reversal in investor confidence in the company after some feared it had lost its AI edge to OpenAI following the launch of ChatGPT in 2022, even though it invented much of the technology on which generative AI is based.

Alphabet has managed to turn its cloud computing business into a major growth driver, attracting Warren Buffett’s Berkshire Hathaway as an investor and getting good early reviews for its new Gemini 3 model.

Steve Sosnick, chief market analyst at Interactive Brokers, said Berkshire’s stake was a major attraction for investors.

“Although it is doubtful that Warren Buffett had any role in this purchase (…), the market still has the mentality that anything Berkshire does is worth imitating, and to be fair, this has worked for a long time,” Sosnick said.

Google shares have also recovered as the company has emerged in recent months largely unscathed from bipartisan antitrust pressure that began in US President Donald Trump’s first term.

The company avoided a forced sale of its Chrome browser after a court found Google’s search business to be an illegal monopoly, but stopped short of ordering the group to be broken up.

But the accelerating rise in the currency’s value is fueling fears about the possibility of a bubble reminiscent of the dot-com boom of the 1990s.

A wave of circular deals involving OpenAI and Nvidia — two of the companies that have been at the center of the AI ​​boom — has also amplified these concerns.

But analysts say Google is well-positioned in the AI ​​race, thanks to its strong cash flow, its in-house chips that serve as an alternative to Nvidia’s processors, and its extensive research business that already benefits from AI integration.