Partnership with Apple
The immediate catalyst for the stock’s rise was the announcement that Apple has chosen Google’s Gemini technology as the foundation for its own AI models and the next generation of the Siri voice assistant. This partnership carries strong symbolic significance, Apple is known for its exceptionally rigorous selection of strategic technologies, and its decision can be seen as a clear endorsement of the quality and technological maturity of Google’s AI solutions. For Alphabet, this represents a pivotal moment that elevates the company from being one of many players in the AI race to a key infrastructure partner.
Best Year in More Than a Decade
The year 2025 was exceptional for Alphabet in terms of stock performance as well. A gain of approximately 65% marks the company’s best annual result since 2009, when the technology sector was recovering from the global financial crisis.* Alphabet thus ranked among the strongest performers on Wall Street and demonstrated that its growth is no longer driven solely by digital advertising, but increasingly by artificial intelligence, cloud services, and its own technological infrastructure.
Alphabet share price performance over the past five years
Google’s AI Comeback
Just two years ago, Google faced doubts over whether it could keep pace with the rapid rise of competitors led by OpenAI. However, the years 2024 and 2025 brought a significant turnaround. Alphabet resolved several regulatory challenges, unified its AI strategy, and introduced products that reshaped market perception of the company. The seventh generation of its proprietary Ironwood TPU chips is now considered a viable alternative to Nvidia’s GPUs, and the Gemini 3 model, launched at the end of 2025, received very positive reviews from both experts and investors.
Analyst Confidence
Analysts are increasingly highlighting Alphabet’s unique advantage in so-called “grounding assets” – its vast ecosystem of data and services such as Search, Maps, YouTube, Gmail, and Android. These assets enable AI models to be effectively connected to the real world and deliver more accurate and practical solutions than standalone language models. For this reason, Citigroup has named Google one of the key technology bets for 2026, noting that the majority of Google Cloud customers are already actively using AI products.
Investment Significance
Crossing the 4 trillion USD threshold is not merely a numerical record. It confirms that Alphabet has firmly established itself among the global technological elite and that its transformation from an “advertising company” into a full-fledged AI leader is now a reality. The partnership with Apple, strong analyst confidence, and technological breadth, from proprietary chips and infrastructure to advanced models, ultimately create a robust investment foundation with potential extending beyond a single market cycle. For investors, Alphabet represents a combination of stability, innovative strength, and long-term growth potential that is becoming increasingly rare in global markets.[1]
* Past performance is no guarantee of future results.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
Sources:
https://www.cnbc.com/2026/01/12/alphabet-4-trillion-market-cap.html
https://www.cnbc.com/2025/12/31/google-stock-wraps-best-year-since-2009-as-ai-excites-wall-street-.html
https://www.cnbc.com/2025/11/06/google-unveils-ironwood-seventh-generation-tpu-competing-with-nvidia.html
