Google’s parent company, Alphabet, is suddenly becoming the star of the stock market. Investors are piling into the stock at a pace not seen in years, pushing the company close to a $4 trillion valuation.
What is surprising how quickly this shift has happened and how it has flipped the usual market order. Though Google surges ahead, AI chip giant Nvidia is seeing its stock cool off.
Alphabet’s rally
On Tuesday morning, Alphabet’s shares continued climbing, lifting its market value to about $3.9 trillion. The stock is already up almost 70% this year, helped mainly by growing trust in its AI products and strategy.
Over the last month and a half alone, Alphabet has added around $1 trillion in market value. That rapid rise has put the company on the verge of becoming only the second US company ever to touch the $4 trillion mark.
Nvidia shares slide
Nvidia’s stock fell more than 5% on Tuesday morning, extending a losing streak that began after reports that Meta may consider using Google’s AI chips.
AI chip maker is still massively valuable, but its market cap has dropped back to under $4.2 trillion, allowing Alphabet to narrow the gap to just about $300 billion, a gap that once felt impossible to close.
Alphabet’s rise picked up speed earlier this month after news broke that Warren Buffett’s Berkshire Hathaway had quietly bought a multibillion-dollar stake in the company, its first-ever investment in Google. For a firm known for carefully chosen, value-driven bets, this was seen as a strong vote of confidence.
Alphabet’s new AI model
Alphabet’s new AI model, Gemini 3.0, is being praised across the tech world. Early reactions claim that it is one of the most capable AI systems available today, able to handle everything from advanced reasoning to generating functioning 3D models through code.
This shift has eased earlier fears that Alphabet was falling behind in the AI race. Instead, Gemini 3.0 has turned Google into a leader again, even as other major models like Grok, ChatGPT 4.1, and 5.1 have launched.
Another reason Alphabet is gaining attention is a report suggesting Meta might be considering Google-designed AI chips. Meta is one of the world’s biggest AI spenders, so even the possibility of such a deal has big implications.
Alphabet has come a long way since going public in 2004 at $2.13 a share. A single dollar invested back then would now be worth around $150, a reminder of how consistently the company has grown.
In the last six months alone, Alphabet’s value has jumped from around $2 trillion to nearly $3.8 trillion, briefly pushing it ahead of Microsoft and making it the third most valuable company in the world, behind Apple and Nvidia.