Alphabet Nears $4 Trillion Market Value. Is There More Upside for the Stock?

"What investors liked as much, if not more, than the model's performance: That is was trained on custom chips designed in-house. The warm reception of Gemini 3 has helped Alphabet pitch its custom tensor processing units, made in collaboration with Broadcom ( AVGO), as an alternative to Nvidia's graphics processing units, which dominate the AI chip market. Alphabet stock also benefited last year from strength in its core advertising business, which accounts for nearly three-quarters of the company's revenue."

"Alphabet ( GOOG)( GOOGL) stock was up about 1% in afternoon trading Thursday, bringing it within a hair of becoming just the fourth company to ever boast a $4 trillion market capitalization. Nvidia ( NVDA), Apple ( AAPL) and Microsoft ( MSFT) are the only other companies to have ever passed that milestone, though the later two have fallen below that threshold. Alphabet on Wednesday became America's second most-valuable company when its market cap surpassed Apple's for the first time since 2019."

Alphabet's stock climbed strongly after a 65% gain in 2025, pushing the company close to a $4 trillion market capitalization and briefly surpassing Apple as the second most-valuable U.S. company. Investor enthusiasm centered on the Gemini 3 AI model, which impressed executives and reportedly prompted OpenAI to declare a "code red" to improve ChatGPT. Gemini 3's reception was bolstered by being trained on in-house custom chips and helped promote Alphabet's tensor processing units developed with Broadcom as an alternative to Nvidia GPUs. Core advertising revenue also showed notable strength, alleviating earlier regulatory concerns.

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