Marina Lyubimova
⬤ Alphabet's latest surge has lifted GOOGL to nearly four trillion dollars in value, one of the sharpest momentum swings in tech this year. The shares have risen about 70 percent in the past twelve months placing the company beside Nvidia, Apple besides Microsoft in the trillion dollar club. This is a stark turnaround from two years ago, when fear that rivals would outpace it in AI kept investors uneasy.
⬤ Several events now power the rally. The Gemini 3 model has drawn praise or Google Cloud - once seen as a laggard - has become a reliable source of revenue. Alphabet also received favorable news on U.S. antitrust matters - it will keep Chrome and faces only modest penalties in search related cases. Berkshire Hathaway's purchase of shares has added further credibility. Google now appears to be one of the few large tech firms that unite AI models, vast distribution, consumer hardware and deep cash reserves under one roof - its custom chips could even pressure Nvidia's pricing power.
⬤ Yet the swift climb carries hazards. Rich valuations draw regulators, short sellers and rival chief executives. Some analysts recall the dot com years as a warning of what occurs when optimism clusters in one place. Tightening links among major AI actors like OpenAI next to Nvidia also raise concern that parts of the market have become overheated.
⬤ The four trillion milestone highlights the clash between explosive growth and structural risk. Alphabet must keep executing, retain pricing power, extend its distribution but also advance its chips if it hopes to hold that valuation. The reactions of regulators and competitors will decide whether Google can maintain this pace as it enters uncharted territory.
Marina Lyubimova
