The Motley Fool·2025-09-14 10:00Core Insights - The article discusses the potential for Alphabet and Apple to reach $4 trillion valuations, driven by their advancements in artificial intelligence and recent favorable legal developments [3][9][16] Company Developments - Nvidia has seen its market cap increase from around $300 billion to over $4 trillion, primarily due to investments in artificial intelligence [2] - Alphabet faced legal challenges regarding its monopoly in internet search but received a lenient ruling that allows it to continue revenue-sharing deals, including with Apple [5][7] - Apple benefits significantly from Alphabet's revenue-sharing arrangement, receiving over $20 billion annually for making Google the default search engine on its devices [6] Financial Performance - Alphabet's cloud business reported a 32% increase in sales in the most recent quarter, with an operating margin of 21% [11] - Revenue from Google Search grew by 12% last quarter, indicating strong engagement and monetization despite the rise of AI chatbots [14] Future Prospects - Both companies are exploring deeper partnerships, with discussions about Apple using Alphabet's Gemini LLM for AI features in iOS and Siri [12][13] - Apple is currently 16% short of the $4 trillion market cap, while Alphabet is about 38% away from that benchmark [15][16] - Alphabet's growth will be supported by improvements in search engagement, cloud margins, and opportunities in AI and quantum computing [16]