New York, Jan 13, 2026, 07:11 EST
- Alphabet’s market cap briefly topped $4 trillion following news that Apple plans to use Google’s Gemini for its next-generation AI models
- Alphabet shares reached a new intraday record, joining Nvidia, Microsoft, and Apple as the only companies to hit a $4 trillion valuation.
- Economists and investors warn that AI-driven wealth surges and policy shocks are changing the key factors for markets
Alphabet (GOOGL.O) briefly hit a $4 trillion market cap on Monday following news that Apple’s (AAPL.O) upcoming AI models will use Google’s Gemini, cementing a multi-year partnership. Class A shares climbed as much as 1.7% to an all-time high of $334.04 before easing back, fueled by optimism around Google Cloud’s growth: revenue surged 34% in Q3, with backlog hitting $155 billion. Phil Blancato, CEO of Ladenburg Thalmann Asset Management, described Alphabet as “the one name that has surprised us all” within Wall Street’s “Magnificent Seven” — a nickname for seven mega-cap tech giants. Alphabet joined Nvidia, Microsoft, and Apple as the fourth company to reach a $4 trillion valuation. 1
Apple’s partnership sends a clear message to investors raising tougher questions about AI’s impact on earnings. Bringing Gemini closer to iPhone users fits the bill for what markets are rewarding—even as valuations remain lofty.
This rally’s heavy reliance on a handful of companies is clear. Once leadership narrows this much, it shifts from pure growth to a mix of politics, power distribution, and control over rule-setting.
Axios this week described the economy as a “Have-Lots” one, noting that the bottom half of Americans hold just about 1% of U.S. stocks, effectively sidelining most households from major market moves. Drawing on the Bloomberg Billionaires Index, it highlighted that Google co-founders Larry Page and Sergey Brin boosted their net worths by $101 billion and $92 billion in 2025. Meanwhile, the median gain among the 50 richest Americans was close to $10 billion. 2
Policy is back on investors’ radar as a key driver. Economist Mohamed El-Erian told Axios that “You are on the receiving end of policy — I don’t think the market realizes this,” after President Donald Trump ordered Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities — bonds tied to home loans — aiming to lower mortgage rates.
In another Axios report on Trump’s push to tap funds without Congress, Columbia Threadneedle portfolio manager Ed Al-Hussainy described the move as “communism with capitalist characteristics.” Peter Tchir, Academy Securities’ head of macro, told clients, “The market seems to be ignoring them.” The White House, meanwhile, insists Trump has a mandate to address the affordability crisis. 3
Alphabet now faces a key test: will the Apple deal translate into steady revenue growth in cloud and ads, or just boost expenses in the AI race? Investors have responded positively to the company’s shift from defense to offense, but they’ll be demanding clear evidence moving forward.
That $4 trillion figure doesn’t leave much margin for error. Should monetization slow down, regulation tighten, or AI expenses balloon beyond expectations, the current frontrunners could quickly become the next source of concern.
