Google's parent company, Alphabet, has reached a market capitalization of $3 trillion for the first time in history, helped by increased investor optimism about artificial intelligence and a court decision not to break up the company.
Alphabet joins tech giants Apple and Microsoft in also reaching that milestone, while AI chipmaker Nvidia remains the world's most valuable company with a market cap of $4.25 trillion.
Google's parent company, Alphabet, has reached a market capitalization of $3 trillion for the first time in history, helped by increased investor optimism about artificial intelligence and a court decision not to break up the company.
Alphabet joins tech giants Apple and Microsoft in also reaching that milestone, while AI chipmaker Nvidia remains the world's most valuable company with a market cap of $4.25 trillion.
Alphabet's Class A shares rose 3.8% to $250, while Class C shares rose 3.7% to $250.4. Both types of shares traded at record highs, Reuters reports .
Including Monday's gain, the company's shares have risen more than 32% this year, the most among G7 stocks and far outpacing the 12.5% gain in the S&P 500, a stock index that tracks the 500 largest U.S. companies by market capitalization.
Investor sentiment improved after a U.S. court this month allowed Alphabet to retain control of its Chrome browser and Android mobile operating system, a key milestone for the company whose dominance in search and mobile ecosystems has long been under scrutiny.
While providing access to the data, as the court order requires, would strengthen competitors in Google's advertising business, not having to give up Chrome or Android removes a major concern for investors who see them as key elements of Google's entire business.
In July, the company's cloud division reported revenue growth of nearly 32% in the second quarter, beating estimates, as investments in its own chips and Gemini AI model began to pay off.
“Although they are still heavily dependent on search, thanks to YouTube, Waymo and other projects, investors are starting to understand that this is no longer just a search company, but a large corporation that is developing many other areas,” said Dennis Dick, chief strategist at Stock Trader Network.
