Google Parent Alphabet Becomes $3T Company Amid AI Enthusiasm

Google parent Alphabet saw its market capitalization reach $3 trillion Monday (Sept. 15) for the first time.

The milestone was driven by a revitalization in optimism around artificial intelligence and an antitrust ruling that went in Google’s favor, Reuters reported Monday.

The company’s stock jumped 32% this year, making it the leader among the “Magnificent 7” stocks, the report said. The other six companies are Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. Two of those firms, Apple and Microsoft, have broken the $3 trillion mark, while Nvidia is the world’s most valuable company with a market cap of $4.25 trillion.

Bokeh Capital Partners Chief Investment Officer Kim Forrest said in the report that tech stocks have led the recent rally and “there has been no other [sector] in the past 18 months, maybe even two years that has had such excitement from investors.”

Investor sentiment saw a boost earlier this month when a federal judge permitted Google to retain control of its Chrome browser and Android mobile operating system, a turning point for the company after years of scrutiny into its dominance in the search and mobile fields, according to the report.

Although sharing data as part of the ruling will bolster Google’s advertising business rivals, not having to offload Chrome or Android takes away a crucial concern for investors who view them as vital pieces of Google’s overall business, the report added.

“They still are very dependent on search, but with YouTube, Waymo and other capabilities and products they’re working on, investors are starting to see that possibility that this isn’t just a search company anymore, this is a company that’s moving into a lot of other things,” Stock Trader Network Chief Strategist Dennis Dick said, per the report.

The news came days after Google Cloud CEO Thomas Kurian discussed the company’s AI revenue generation thus far.

“We’ve made billions using AI already,” Kurian said Tuesday (Sept. 9) at the Goldman Sachs Communacopia and Technology Conference in San Francisco.

“Our backlog is now at $106 billion; it is growing faster than our revenue,” he added. “More than 50% of it will convert to revenue over the next two years.”

Google reported revenue of $13.62 billion for its cloud computing unit, up 32% over the prior year.