Alphabet Joins Coveted $4T Club Powered By AI Strength; Nvidia Leads, Apple’s Out

• Alphabet achieved a market capitalization of $4 trillion for the first time.
• Google’s new AI partnership with Apple drove the stock 1% higher on Monday.
• GOOGL has risen sharply in recent months, driven by a favourable reception for Gemini 3.  

Alphabet, Inc. joined Nvidia Corp. in the coveted $4 trillion market cap club on Monday after its shares rose 1% on a new AI partnership with Apple.

The milestone is underpinned by strong momentum in Alphabet’s stock over recent months, driven by a favorable antitrust ruling and the rollout of its latest AI technology, widely seen as setting new industry benchmarks.

GOOGL emerged as the top-performing stock in the “Maginificent Seven” group last year, with over 65% gains. It took Alphabet nearly three months to go from a $3 trillion market cap to a $4 trillion market cap.
 

Alphabet overtook Apple in market capitalization earlier this month and is now the second-most valuable company in U.S. markets. Nvidia, the bellwether of the AI industry, crossed the $4 trillion mark in July last and seems to be firmly holding that position. Apple briefly traded over $4 trillion toward the end of last year.

Apple Deal

On Monday, Apple announced that it has partnered with Google to power forthcoming AI features for its Siri assistant. 

“After careful evaluation, we determined that Google’s technology provides the most capable foundation for Apple Foundation Models and we’re excited about the innovative new experiences it will unlock for our users,” according to a joint statement.

The deal, under which Apple is reportedly paying Alphabet about $1 billion a year, is a major win for Google – not only because of Apple’s vast consumer base, but also because it underscores Apple’s choice of Google’s AI technology over that of OpenAI, a former partner.

Reactions

“Google’s in the driver's seat,” Wedbush analyst Dan Ives said in an interview with CNBC. “A year ago, (even) the New York City cab driver was bearish on Google… the view was AI was going to really ruin Search.” Now, “the exact opposite has happened.”

However, Elon Musk hit back, saying that the deal “seems like an unreasonable concentration of power for Google given that [they] also have Android and Chrome.” 

Musk runs xAI, whose Grok AI competes directly with AI from OpenAI and Google, and has often made direct jibes at the competition. In fact, last year Musk sued Apple and OpenAI for prominently featuring ChatGPT on Apple’s App Store, claiming it unfairly disrupts competition.

Google Continues March

Google is keeping up the push: Samsung recently said it is expanding Gemini features to twice as many smartphones as before, while earlier this week, Google announced a slew of partnerships and new AI tools for major retailers.

Alphabet is expected to close the fiscal year with 14.4% revenue growth ($400.2 billion), its highest pace since 2021, and 31% growth in adjusted profit per share ($10.55), according to Koyfin estimates. The stock is up 6% already this month, with a ‘bullish’ sentiment on Stocktwits.

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