The Motley Fool·2025-09-26 09:00Core Insights - Apple became the first company to reach a $1 trillion market cap about seven years ago and reached $3 trillion in early 2022, now joined by Microsoft and Nvidia in the $3 trillion club [1][2] - Alphabet entered the $3 trillion club on September 15, following a favorable court ruling regarding antitrust issues [5][6] - The lenient ruling allowed Alphabet to maintain its revenue-sharing agreements with Apple, which generates $20 billion annually for Apple [8][9] Company Performance - Alphabet's stock was previously weighed down by potential antitrust remedies, but the recent ruling has lifted this overhang [9][10] - Despite fears of competition from AI chatbots, Alphabet's Google search revenue grew 12% year over year last quarter, indicating strong performance [11] - AI features are driving increased traffic and monetization for Alphabet's search services [11] Growth Drivers - Alphabet's cloud computing business surpassed a $50 billion run rate in Q2, with an operating margin of 21%, which could expand further [12] - The company's Other Bets, particularly the Waymo self-driving car business, are making significant progress and could accelerate growth [13] - Multiple expansion is a key factor for Alphabet's potential growth, as it currently trades at 25.7 times forward earnings estimates, lower than its peers [14][15]