Alphabet Surpasses Apple in Market Capitalization
Alphabet achieved a $4 trillion market valuation on Monday, as the company’s significant focus on artificial intelligence (AI) alleviated concerns about its strategic direction. The tech giant surpassed Apple in market capitalization for the first time since 2019, becoming the second most valuable company globally.
Investor Confidence Soars
These milestones signify a notable shift in investor confidence towards Alphabet, with its stock soaring approximately 65% in 2025, outpacing its elite Wall Street counterparts known as the “Seven Magnificents.” The stock has further increased by 6% this year.
This transformation was driven by Alphabet addressing concerns that it might have missed an initial advantage in AI. The company transformed a cloud unit into a significant growth driver and attracted an unusual tech investment from Warren Buffett’s Berkshire Hathaway.
Positive Reception of Gemini 3
Alphabet’s new model, Gemini 3, has garnered highly favorable reviews, intensifying pressure on OpenAI following user dissatisfaction with GPT-5.
Key Questions and Answers
- Who is Alphabet? Alphabet is the parent company of Google, along with several other subsidiaries. It was created in 2015 to separate its core businesses from more ambitious, long-term projects.
- Why is Alphabet’s focus on AI significant? Alphabet’s emphasis on artificial intelligence has positioned it as a leader in the technology sector, driving growth and attracting investments. This focus has helped Alphabet surpass Apple in market capitalization.
- What are the “Seven Magnificents”? The term refers to a group of seven highly successful and influential technology companies on Wall Street, including Apple, Microsoft, Amazon, Facebook (now Meta), Alphabet (Google), Tesla, and Alibaba.
- What is Berkshire Hathaway? Berkshire Hathaway is a multinational conglomerate holding company chaired and managed by Warren Buffett. Its subsidiaries include insurance, energy, retail, railroad, and food companies.
- What is Gemini 3? Gemini 3 is a new model developed by Alphabet. Its highly favorable reviews have increased pressure on OpenAI, another AI-focused company.
