Expectations around artificial intelligence have sent tech valuations to record highs over the past year. Eager to ride the wave of digital innovation, investors have been pouring money into firms close to the action, hopeful for high returns. Despite warnings of overvaluations — even coming from Google’s CEO himself — Silicon Valley’s star players continue to see their market caps rise. On Monday, Alphabet joined giants Nvidia, Microsoft, and Apple when it surpassed the $4 trillion valuation mark for the first time. This makes it the world’s second-most valuable company, after chipmaker Nvidia.
Multiple factors contributed to Alphabet’s recent rise, with its stock having jumped around 75% over the past year — and nearly 7% since the start of January. A notable boost came from Apple’s decision to use Google’s Gemini AI model as part of an upgrade to its digital assistant Siri. The value of the deal, announced on Monday, hasn’t been disclosed. But the news amounts to a vote of confidence in Google’s ability to compete in the new realm of AI.
