Alphabet, Google’s parent firm, rose to its highest-ever share price on Tuesday, riding the artificial intelligence (AI) wave to a record valuation.
The stock rose to an all-time intraday high of $159.89 a share before closing at $158.14, representing a 1.3% gain amid modest broader market losses. This milestone increased Alphabet’s total market value to $1.95 trillion, bringing it closer to $2 trillion.
This exclusive $2 trillion club presently includes only American tech titans such as Microsoft, Apple, Nvidia, and Saudi Aramco, the Saudi Arabia-controlled oil behemoth.
Alphabet’s current rise is supported by a 13% increase in its share price year to date and an amazing 77% increase since the end of 2022.
These gains were driven by record profits from strong advertising spending and investor confidence in the company’s AI potential.
According to Forbes, Wall Street analysts expect Alphabet’s stock to continue rising, with an average price target of $166, meaning a $2.1 trillion market cap. Despite its exceptional performance, Alphabet’s annualized return on investment over the last decade is 19%, lagging trillion-dollar rivals such as Amazon, Apple, Microsoft, Meta, and Nvidia, which have generated annualized returns of more than 20%.
This divergence reflects the market attitude toward Alphabet’s AI services, while recent events indicate that sentiment is improving as Google emerges as a leader in generative AI.
Investors are looking forward to Alphabet’s first-quarter earnings release later this month, with analysts expecting a record Q1 profit of over $19 billion.
This will provide additional insight into Alphabet’s future and continuous evolution as a dominant force in the tech scene, fueled by breakthrough AI-driven initiatives and robust advertising income.
In February, Google’s market worth dropped by $90 billion, owing partly to their Gemini AI tool producing erroneous racial representations of historical figures. Its share price declined 4.5% to $138.75.
Alphabet Inc. is an American technological giant and holding company formed in 2015 through the strategic reorganization of Google and its several subsidiaries.
Alphabet, which serves as Google’s parent company, reflects Larry Page and Sergey Brin’s vision for continued technological improvement in healthcare, entertainment, transportation, venture capital finance, and artificial intelligence (AI).
The restructuring aims to optimize Google’s core business operations while giving other businesses inside Alphabet more autonomy.
