TLDR
- Alphabet reached a $3 trillion valuation, joining Apple and Microsoft.
- AI momentum and cloud growth fueled a 32% stock surge in 2025.
- A U.S. court allowed Alphabet to keep Chrome and Android, boosting investor sentiment.
- Shares trade at record highs with a forward P/E of 23, lowest among the “Magnificent 7.”
- Alphabet is expected to post $2.33 EPS this quarter, up 9.9% year-over-year.
Alphabet Inc. (NASDAQ: GOOG) closed at $251.76 on September 15, 2025, gaining 4.3% and pushing its market cap above $3 trillion.
Shares ticked up further in pre-market trading at $254.11, adding 0.93%. This milestone makes Alphabet the third U.S. company after Apple and Microsoft to cross the $3 trillion mark, driven by strong AI growth and a favorable antitrust ruling.
🚨BREAKING: ALPHABET HITS $3 TRILLION
Now the 4th company in history to reach this milestone, joining Apple, Microsoft & Nvidia.
Big Tech’s trillion-dollar club just got even stronger🔥 pic.twitter.com/TREC6WvNnw
— cryptothedoggy (@cryptothedoggy) September 15, 2025
AI Momentum Powers Stock Surge
Shares of Alphabet have soared 32% year-to-date, far outpacing the S&P 500’s 12.5% return. Investors are betting on AI expansion, with Alphabet’s Gemini AI model and in-house chip investments pushing its cloud unit’s revenue up nearly 32% in Q2. The AI rally has lifted Wall Street indices to record highs, supported by hopes of a Federal Reserve rate cut.
Oracle’s strong AI forecast and Nvidia’s $4.25 trillion market cap have added fuel to the sector, making Alphabet one of the strongest players in the “Magnificent 7.”
Antitrust Ruling Boosts Investor Confidence
Earlier this month, a U.S. court allowed Alphabet to retain its Chrome browser and Android ecosystem. While the company will share some data with rivals, avoiding divestiture of these businesses removed a major overhang for shareholders. These platforms are central to Alphabet’s advertising and mobile dominance, and their retention is viewed as a long-term win for growth stability.
Diversification Beyond Search
Though search remains its largest business, Alphabet is increasingly seen as more than an ad-driven company. Analysts highlight YouTube, Waymo, and cloud services as growth drivers. Investors now see Alphabet’s business model as broadening, supported by innovation in AI, robotics, and connected technologies.
Valuation and Analyst Outlook
Alphabet trades at 23x forward earnings, slightly above its five-year average of 22, yet the lowest valuation among its Big Tech peers. According to Zacks, the company is expected to post $2.33 EPS for the current quarter, up 9.9% year-over-year. Full-year EPS is forecast at $9.99, up 24.3% from 2024, with 2026 estimates projecting a 6.1% increase.
The Zacks Rank assigns Alphabet a #3 (Hold), reflecting stable earnings revisions. Over the past month, the stock has gained 17.8%, outperforming the S&P 500 and its industry peers.
Performance Snapshot
Over the past year, Alphabet stock has surged 59.7%, with a three-year gain of 144% and a five-year rise of 229%. By comparison, the S&P 500 has delivered returns of 17.6%, 69.6%, and 94.5% over those same periods.
Alphabet’s strong AI momentum, court victories, and consistent earnings growth make it one of Wall Street’s most closely watched stocks.
