Google parent Alphabet is closing in on a historic milestone. The stock has surged nearly 35 per cent in the past six weeks, adding about $1 trillion in market value and putting the company within striking distance of a $4 trillion market cap, a level reached by only one other U.S. company: Nvidia.
By Tuesday morning, Alphabet shares had risen another 1.3 per cent, lifting the company’s valuation to roughly $3.9 trillion. The stock is now up almost 70 per cent in 2025, emerging as one of Wall Street’s strongest performers amid a broader tech rally.
The renewed enthusiasm extends far beyond Google’s traditional businesses, such as search and YouTube. This time, investors are betting big on Alphabet’s AI momentum, its expanding product line, and what appears to be a rapid reset in market perception.
Meanwhile, Nvidia, long the undisputed winner of the AI boom, is under pressure. Its stock slipped more than 5% Tuesday morning, extending a month-long slide of nearly 10 per cent following reports that Meta may be eyeing Google-designed AI chips. Even with the pullback, Nvidia remains up 25 per cent year-to-date, but its once-commanding lead is narrowing. Its valuation hovered just under $4.2 trillion on Tuesday.
Alphabet’s six-week run has been fuelled by multiple catalysts. One is the revelation that Berkshire Hathaway quietly built a multibillion-dollar stake in the company — a rare endorsement from Warren Buffett’s famously selective investment team. Another is the strong early reception of Gemini, Alphabet’s newest and most advanced AI model, which has shifted sentiment sharply in Google’s favour.
Reports that Meta may be considering Google’s AI accelerators only intensified investor excitement. Even without a confirmed deal, Alphabet being in the conversation signals how far its in-house chip programme has progressed.
By Tuesday, Alphabet sat roughly $300 billion behind Nvidia. A gap that once looked impossible to close now resembles Silicon Valley’s next big race.
