5 Reasons Why Alphabet Just Hit US$3 Trillion

Core Insights - Alphabet has reached a market valuation of US$3 trillion, becoming the fourth company to achieve this milestone, joining Nvidia, Microsoft, and Apple [1] Group 1: Infrastructure Advantage - Alphabet operates 33 submarine cables spanning over two million miles, which supports its vast data needs and enhances its internet infrastructure [2] - The company is one of the largest manufacturers of data centers, allowing it to maintain low costs and offer free software, a significant advantage over competitors [3] - This infrastructure is crucial for all of Alphabet's operations, emphasizing its importance in the company's business model [4] Group 2: User Base and Product Reach - Alphabet has seven products, including Android and YouTube, each with over two billion users, showcasing its unmatched product breadth [5] - Additionally, eight other products have over 500 million users, indicating Alphabet's digital ubiquity in the market [6] Group 3: AI Developments - Alphabet has made a significant comeback in the AI sector with its Gemini platform, which has surpassed ChatGPT in iOS app downloads [7] - AI Overviews now reach over two billion monthly users, contributing to a 10% increase in global queries [8] - Gemini's latest models have attracted nine million developers, indicating strong growth potential [8] Group 4: Revenue Growth - The combined revenue run rate for Google Cloud and YouTube is US$110 billion, with Google Cloud generating US$49 billion in the past year [10] - YouTube has become the leading streaming platform in the U.S., capturing 12.8% of total TV viewing as of June 2025 [10] - The subscription business has surpassed 270 million paid subscriptions, driven by YouTube and Google One [11] Group 5: Long-term Strategy - The AI landscape is still evolving, and Alphabet's infrastructure and long-term strategy position it well for future developments [12] - The company emphasizes that success in tech is not about being first but about enduring over time, highlighting the importance of patience for investors [14]