Alphabet shares hit new highs after Google and Apple AI partnership
Alphabet shares continued to rise, gaining 0.8% on Tuesday to reach $334.6, marking a fifth consecutive day of growth. The previous day’s close set a new all-time high following news of a partnership between Google and Apple in artificial intelligence, pushing Alphabet’s market capitalization above $4 trillion for the first time.
Source Barrons
Alphabet became the fourth American company to surpass this milestone, following Nvidia, Microsoft, and Apple. Notably, the climb from $3 trillion to $4 trillion took Alphabet only 82 trading days — significantly faster than Nvidia’s 273 days, Microsoft’s 441 days, and Apple’s 586 days.
Commenting on Alphabet’s stock performance, international financier Alona Shevtsova notes that the rapid rise in the company’s market capitalization reflects not only market optimism but also a shift in investor expectations regarding the long-term role of artificial intelligence in Alphabet’s business model. According to her, the AI partnership with Apple could act as a strategic catalyst for scaling Google’s ecosystem, while in-house developments such as Gemini models and proprietary TPU chips provide a competitive edge through cost control and vertical integration. At the same time, she points out that after such a fast rally, the market may enter a period of heightened volatility, where financial results and the company’s ability to translate innovation into sustainable cash flow will be decisive.
The rally is largely driven by progress in AI development. Investors are optimistic about the advancements in Gemini models and proprietary tensor processing units (TPUs), which offer lower costs for certain deep learning tasks compared to Nvidia’s graphics processors.
