Google parent company Alphabet Inc (NASDAQ: GOOGL) joined the US$3 trillion club overnight after the company recently dodged a bullet on anti-trust issues and as it continues to ride the artificial intelligence wave.
Alphabet Class A stock closed 4.5% higher at US$251.61 after hitting a 12-month high of US$252.41. Investors are sitting on strong gains for the year, with the stock trading as low as US$140.53 over the past year.
It came as both the US S&P 500 Index (SP: .INX) and Nasdaq Composite Index (NASDAQ: .IXIC) indices hit fresh record highs. Alphabet now joins a small club of stocks worth more than US$3 trillion, including Microsoft and Apple, while Nvidia is now worth more than US$4 trillion.
Alphabet stock has been performing particularly strongly since early this month when US Judge Amit Mehta ruled that the company did not have to sell off its Chrome browser as part of an antitrust ruling, which some market-watchers had feared could happen.
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Artificial intelligence a tailwind
The company is also leaning into the artificial intelligence trend, which chief executive officer Sundar Pichai called out in the company's most recent earnings release on July 23.
We had a standout quarter, with robust growth across the company. We are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum. Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well.
Mr Pichai said at the time that YouTube was continuing to perform well.
And Cloud had strong growth in revenues, backlog and profitability. Its annual revenue run-rate is now more than $50 billion. With this strong and growing demand for our Cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead.
Alphabet is rated a moderate buy according to a survey of 45 Wall Street analysts by MarketBeat.
