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Alphabet hits $4 trillion valuation as AI refocus lifts sentiment

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Alphabet hit a $4 trillion market valuation on Monday, as the Google parent’s sharpened artificial intelligence (AI) focus allayed doubts about its strategy and thrust it back ​to the forefront of the high-stakes race.

The tech giant on Wednesday ‌surpassed Apple in market capitalisation for the first time since 2019, becoming the second most valuable company in the world.

 

The milestones mark a remarkable change in investor sentiment for Alphabet, with its stock surging about 65% in 2025, outperforming its peers on Wall ‌Street’s elite group of stocks, the so-called Magnificent Seven. The stock has ​gained another 6% so far this year, and was last up 1.1%.

 

The shift was fueled by the company quelling concerns that it let an early AI advantage ‍slip by, turning a once-overlooked cloud unit into a major growth engine and drawing a rare tech investment from Warren Buffett’s Berkshire Hathaway.

 

Its new Gemini 3 model has also drawn strong reviews, intensifying pressure on ⁠OpenAI after GPT-5 left some users underwhelmed. A Reuters report said that Samsung Electronics plans ‍to double this year the number of its mobile devices with AI features powered by Google’s ‌Gemini.

 

–Reuters–