Jakarta, INTI - Alphabet Inc. briefly reached a market capitalization of US$4 trillion, equivalent to approximately Rp 67.43 quadrillion (based on an exchange rate of Rp16,860 per US dollar), during Monday’s trading session. The surge in valuation was driven by rising investor confidence in the Google parent company’s artificial intelligence (AI) strategy.
Market sentiment strengthened following reports that Apple’s next generation AI models will be built on Google’s Gemini technology. The collaboration, described as a multi-year agreement, is seen as a strong signal that Gemini is gaining adoption among the world’s leading technology players.
Alphabet’s Class A shares (GOOGL) climbed as much as 1.7 percent to a record high of US$334.04 before paring back some of the gains. Last week, Alphabet also surpassed Apple in market capitalization for the first time since 2019, positioning the company as the world’s second most valuable firm.
Throughout 2025, Alphabet’s shares surged by approximately 65 percent, outperforming other major technology stocks on Wall Street within the group commonly known as the “Magnificent Seven”
According to Phil Blancato, CEO of Ladenburg Thalmann Asset Management, innovation has become Alphabet’s key differentiator compared with its technology peers, a factor that is now clearly reflected in the company’s financial performance.
“Among the Magnificent Seven stocks, Alphabet has been the most surprising name for us over the past 12 months. They are beginning to break through their traditional business model,” he said, as quoted by Reuters, January 12, 2026.
A Reuters report also previously noted that Samsung Electronics plans to double the number of AI-enabled mobile devices powered by Gemini this year. In addition, the latest Gemini 3 model is reported to have received a positive response from the market.
The latest Gemini 3 model has also been met with a positive responses from both the market and technology analyst, adding pressure on OpenAI, particularly after the launch of GPT-5 was seen as falling short of expectations among some users.
Alphabet’s growth has been further supported by the strong performance of Google Cloud. Revenue from the unit rose 34 percent in the third quarter, while unrecognized contract value reached US$155 billion. Alphabet has also begun leasing its in-house AI chips to external customers, a move that marks a shift from their previous internal-only use.
Google Cloud and AI Chips Drive Alphabet’s Growth
The Information previously reported that Meta Platforms is exploring the purchase of Alphabet’s AI chips worth billions of dollars, with plans to deploy them in data centers starting in 2027.
Stable Advertising Business and Regulatory Relief
Meanwhile, Alphabet’s advertising business has remained relatively stable despite global economic uncertainty and intensifying industry competition. The company’s shares also gained support after a US court rejected efforts to break up the company in September, allowing Alphabet to retain control over Chrome and the Android operating system.
Conclusion
The strong market reception of Gemini, combined with robust cloud growth and expanding AI chip commercialization, has reinforced Alphabet’s position in the global technology landscape. With regulatory pressure easing and its core advertising business remaining resilient, Alphabet appears well positioned to sustain its momentum amid intensifying competition in the AI sector.
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