New York, January 12, 2026, 11:10 EST
- Alphabet’s market value hit $4 trillion after investors responded positively to its intensified focus on artificial intelligence
- Google Cloud’s expansion and a fresh effort to lease out its in-house AI chips now stand as central elements of the bullish outlook
- Shares dipped modestly in late morning trading following a robust 2025 performance
Alphabet reached a $4 trillion market value on Monday, marking a major shift in how investors view the Google parent amid the AI boom. (Reuters)
The AI race has morphed into a spending war—chips, data centers, talent—and investors are backing the handful of companies they believe can bankroll this push while keeping margins intact. Alphabet’s leap also shakes up the upper ranks of global equities, having surpassed Apple in market cap last week.
The company’s rebound also serves as a modest answer to a debate swirling since ChatGPT’s rise in 2022: did Google lose its early AI lead? Alphabet is fighting back, doubling down on Google Cloud, rolling out new models, and attempting to market its internal hardware rather than keeping it solely as infrastructure.
Alphabet shares slipped roughly 0.2%, trading near $327.93 late this morning.
The stock jumped roughly 65% in 2025 and has climbed an additional 6% this year, Reuters reports via Investing.com. It’s emerged as one of the top performers among the “Magnificent Seven,” the powerhouse group of mega-cap tech stocks driving U.S. market gains. (Investing)
Google Cloud took center stage, with revenue soaring 34% in Q3. Meanwhile, the backlog of signed contracts yet to be recognized as revenue climbed to $155 billion, the report revealed. (Investing)
Alphabet has begun leasing its in-house AI chips, previously kept mostly for internal projects. According to The Information, Meta Platforms is negotiating a multi-billion dollar deal to buy Alphabet’s chips for its data centers from 2027 onward. This signals growing interest outside Nvidia’s stronghold. (The Economic Times)
Beyond Google, distribution is gaining traction. Samsung Electronics aims to double the count of mobile devices featuring “Galaxy AI” this year, reaching 800 million units, mostly powered by Google’s Gemini, Samsung mobile chief T M Roh told Reuters. “We will apply AI to all products, all functions, and all services as quickly as possible,” Roh said. (Reuters)
Alphabet’s core advertising business remains the dominant revenue driver, holding steady despite economic uncertainty and fierce competition, Reuters reported.
Regulators continue to influence the outlook. In September, a U.S. judge blocked efforts to break up the company, letting it keep control over Chrome and Android—a ruling that lifted a significant cloud for investors. (Reuters)
Alphabet joined Nvidia, Microsoft, and Apple as the fourth company to hit the $4 trillion valuation, highlighting just how concentrated the market’s AI leadership has turned.
The stakes are higher at this scale. A misstep — whether it’s cloud growth slowing, ad demand weakening, a tougher antitrust outcome, or a competitor pulling ahead — could slam the stock quickly, especially after a rally that’s already baked in significant progress.
