Alphabet has reached the $4 trillion market capitalization point, thus joining the club and becoming the fourth company in history that have ever done so. On Monday, the stock price of Alphabet, Google’s parent company, increased by around 1% after the announcement that Apple chose Google’s Gemini platform as the basis for its artificial intelligence models and upgrade of Siri.

This announcement was a strong endorsement of Google’s AI strategy and placed Alphabet in the same group as Nvidia, Microsoft, and Apple.

An Earned Milestone

Alphabet being part of the $4 trillion club is quite a significant event if one considers the recent fluctuations in the market of its rivals. Nvidia and Microsoft both crossed that limit in July, while Apple did the same in October. However, all three have since fallen below that point.

On the other hand, Alphabet’s rise is due to the fact that investors are still confident in the company, which is reflected in the stock price that increased 65% last year. The last time the company had such a good performance was in 2009 when the shares went up twice during the recovery after the global financial crisis.

The AI Comeback Story

The hype was mostly caused by Alphabet’s slow but steady AI reset. After the initial doubts about whether Google had lost its creative spark, the company started to build back its momentum in 2025. In November, it launched Ironwood, the 7th generation of its tensor processing units, and pit the custom chip as a legitimate rival to Nvidia’s GPUs. A month after that Google introduced Gemini 3, which got good reviews and changed the story of its competition in generative AI.

Standing Firm despite the Competition

The progression of Alphabet comes when the competition with OpenAI’s ChatGPT and Sora is getting tougher. These two have been attracting more and more consumers. Besides that, there has been the question of whether online advertising will still be around in an AI-driven world or not.

Nevertheless, Alphabet has been able to dismiss worries that its fundamental business is in danger, if anything, it has become quite clear that the company’s advertising and search ecosystem can get even more stronger with AI.

Analyst Confidence Builds

Wall Street is very much aware of this situation. In a research note of 8th January 2026, analyst Deepak Mathivanan upgraded the rating for Alphabet’s stock, mentioning that the technological benefits of the Gemini assistant app are being overlooked.

He pointed out that Google has the capacity to “ground” AI responses by means of its enormous data resources, thus proposing that the use of this technique grants Gemini a benefit over ChatGPT’s dependence on external integrations. Mathivanan believes that through investing in AI for a decade, Alphabet has built strong and long-lasting competitive barriers.

He said,

“We believe the technological advantages of the Gemini assistant app — powered by Google’s ‘grounding’ assets — vs. ChatGPT (powered by Bing and partner integrations) are underappreciated. Google arguably, has the strongest footprint across several layers in the AI tech stack, and the company’s decade-long investments have enabled deep competitive moats”.

Cloud and Chips Support

Citi analysts were equally optimistic, and they classified Google as a top internet choice for 2026. They drew attention towards AI being strongly adopted within Google Cloud and that nearly 70% of the customers have already utilized its AI products.

Analysts regard Alphabet as exceptionally well positioned in order to satisfy the growing enterprise demand with its proprietary chips, extending facility capacity, and increasingly powerful models.

Bottom Line

Alphabet’s $4 trillion market cap is not only a symbolic victory, but it also signifies a company that has survived regulatory pressures, not cared about being called less innovative, and it once again positioned itself as a major player in the AI era.

The competition is still tough and the tech world is always changing, but Alphabet’s recent trend indicates that it is not only keeping up with the future of AI, but is also influencing it.