Alphabet's AI surge makes it the 4th-ever company to crack a $4 trillion market cap

• Alphabet's latest stock surge brought its valuation past $4 trillion on Monday.
• Shares of the Google parent soared 65% last year amid the broader AI rally.
• It marks the first time its stock has surpassed Apple in market cap in about seven years.

Another tech titan just joined the $4 trillion club.

Alphabet became the fourth company to reach a $4 trillion valuation on Monday, attesting to the immense hype surrounding AI that has propelled mega-cap tech firms to the stratosphere. The stock rose as much as 2% before paring gains.

Alphabet joins Nvidia, Microsoft, and Apple in the elite club of the world's most valuable companies.

Its surge to all-time highs on Monday came as Apple said that it picked Google's Gemini to power the iPhone maker's AI features in its devices.

"Apple and Google have entered into a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google's Gemini models and cloud technology. These models will help power future Apple Intelligence features, including a more personalized Siri coming this year," the companies said in a statement.

CNBC earlier reported news of the deal.

The search giant launched its latest Gemini 3 AI model to rave reviews. The gains have leapfrogged competing models from OpenAI and other rivals that have been trying to chip away at Google's dominance.

Google's full-stack advantage is also winning investor confidence. It's demonstrating that its in-house TPU chips are becoming a greater threat to Nvidia's AI chip monopoly, while Google has huge distribution for AI through Search, YouTube, and other popular products.

Alphabet's latest stock surge also marks the first time it has surpassed Apple's valuation in seven years. Apple's market cap hovered around $3.8 trillion on Monday.

Shares of the Google parent soared 65% in 2025, and the stock is up 3% year-to-date.