UPDATE: Google’s parent company, Alphabet, is surging towards a historic $4 trillion market capitalization as shares spike amid a broader tech rally. As of Tuesday morning, October 17, 2023, Alphabet’s stock jumped approximately 1.3%, bringing its market value to nearly $3.9 trillion.
Investors are buzzing about Alphabet’s advancements in artificial intelligence (AI), which are reshaping perceptions of the tech giant. Year-to-date, Alphabet’s stock has soared almost 70%, adding about $1 trillion in market value over just the past six weeks. If this trend continues, Google could become only the second company in U.S. history to cross the $4 trillion threshold, following AI titan Nvidia, which recently retreated from its $5 trillion market cap.
The latest surge comes on the heels of Warren Buffett’s Berkshire Hathaway revealing a multibillion-dollar position in Alphabet, marking its first investment in the tech company. This endorsement by a notoriously cautious investor signals strong faith in Alphabet’s AI strategy, suggesting significant potential for growth and profitability.
In a competitive landscape, Alphabet is emerging as a formidable challenger to Nvidia in the rapidly expanding market for AI accelerators. Its new Gemini AI model, touted as the company’s most advanced system, is receiving positive reviews, alleviating earlier investor concerns about Alphabet falling behind in AI technology.
Additionally, reports indicate that Meta is in discussions to purchase Google-designed AI chips. Given Meta’s status as one of the largest AI spenders globally, any shift away from Nvidia could have major ramifications, further solidifying Alphabet’s position in the market. Although a deal is not guaranteed, the mere prospect of Alphabet’s involvement in high-stakes negotiations underscores the company’s growing capabilities.
As of Tuesday, Alphabet’s market cap sits approximately $300 billion behind Nvidia’s, a gap that once seemed insurmountable but now appears within reach.
Since its IPO in August 2004, Alphabet’s stock has skyrocketed nearly 15,000%, turning every dollar invested into about $150 today. With investor sentiment rapidly shifting and major developments unfolding, all eyes are on Alphabet as it races towards a potential milestone that could redefine the tech landscape.
Stay tuned for updates as this story develops and watch for what could be a critical moment in tech history.
