- Alphabet surpasses $3 trillion in market value for the first time, joining the ranks of Apple, Microsoft, and Nvidia.
- The boost comes from the rise of AI and a favorable antitrust ruling that prevents divestitures in Chrome and Android.
- Shares at all-time highs; strong cloud performance with quarterly revenue up nearly 32%.
- Upward results, Gemini adoption, and positive analyst outlooks reinforce momentum.
Alphabet, Google's parent company, has broken the barrier of 100 million for the first time. $3 trillion market capitalization, a milestone that places it among the most valuable companies on the planet and confirms the market's confidence in its growth strategy.
The rise was accompanied by a strong pull in the price: Class A shares advanced about 4,6% to $251,88, while Class C shares rose nearly 4,5% to $252,30, both reaching record highs during the session.
What happened on the trading floor
With this milestone, the company joins the select group which already included Apple and Microsoft, while Nvidia surpasses 4 billion of dollars in market capitalization. The values of Apple and Microsoft are around 3,52 and 3,78 trillionrespectively.
Since the April lows, Alphabet has rallied more than a 70%, adding approximately 1,2 billones dollars in value in that period. So far this year, the advance far exceeds the 30%, ahead of the S&P 500 (about 12,5%) and among the best of the group known as the Magnificent Seven.
The sectoral context accompanies: the Nasdaq hits record highs amid the enthusiasm for artificial intelligence. For example, Oracle posted a rise of nearly 36% in a single session last week, in the midst of the techno wave.
The current milestone culminates a trajectory of acceleration: Alphabet reached the billion in January 2020 and 2 trillion in April 2024It took four years to double in size and less than a year and a half to reach its third trillion mark.
The catalysts: AI and antitrust ruling
One of the decisive elements was a federal court decision in early September, which prevented more severe measures and did not force Alphabet to divest key assets or to separate products such as Chrome or AndroidThe market interpreted this as immediate regulatory relief.
Judge Amit Mehta concluded that Google retains dominant power in search, but imposed less drastic remedies: prohibition of exclusive contracts of distribution and obligation to share certain data of the search engine with competitors. However, the company may continue paying manufacturers like Apple or Samsung for pre-installing their services.
This verdict reduces uncertainty in the medium term, by ruling out the forced sale of Chrome or exclusion from the search market for five years, two scenarios that were on the table, such as an offer for Chromeand that worry investors.
Key results and businesses in acceleration
In the second quarter, Alphabet recorded a profit of 28.196 million dollars, 19,37% more than a year earlier (23.619 million), driven by the demand for AI products and the solidity of its business lines.
Cloud was a pillar of the quarter: Google Cloud revenue grew almost 32%, exceeding forecasts, as the investments in proprietary chips and the deployment of the Gemini artificial intelligence model.
In the first half of the year, the company earned $62.736 billion (+32,7% year-on-year) and billed 186.662 million (+13%). The improved mix and operational efficiency are reflected in more robust indicators.
The margins also accompany: the Operating margin has moved in the environment of the 34% –35% in 2025, with a net margin close to 38% in the first quarter. At the valuation level, the group maintains a capital efficiency remarkable (EV/EBITDA around 21,15) and a stabilized WACC below the 10%.
In parallel, Google accelerates the product cycle: the Gemini integration into search, Workspace, advertising and the cloud This is beginning to be seen in the growth in demand and in the improvement in platform performance.
What analysts and the market say
From Citigroup, Ron Josey raised his price target of 225 to $280 per share, highlighting a accelerated development cycle and the growing adoption of Gemini in both the advertising and cloud businesses.
Bank of America points out that the evidence of progress in Gemini and the increased use of searches could favor a expansion of the multiple towards historic premium levels, provided that the pace of execution is maintained.
The general perception is that Google is performing better in its product ecosystem, with greater demand and improved profitability, factors that are reinforcing investor interest in the medium term.
Competition and the technological board
In valuation, Nvidia leads with more than 4 billion, followed by Microsoft and Apple, both above 3,5 trillion. Alphabet competes head to head in the AI and cloud race, supported by its infrastructure and commercial reach.
Among the Magnificent Seven, progress is mixed this year, but Alphabet is among the standouts. AI competition is heating up with Microsoft/OpenAI and Meta, and the new competition from browsers requires maintaining a high pace of innovation and product deployment.
The regulatory challenges remain in place, especially in the United States and Europe, where scrutiny of search and digital advertising remains tight. Complying with the ruling's new obligations and preserving ecosystem interoperability will be key.
The surpassing of 3 trillion dollars is not only symbolic: it underlines that the market rewards to those who capitalize on the AI wave without neglecting their core businesses. keys to watch out for They cover Gemini traction, the cloud pulse, margin evolution, and regulatory developments.
