Will Alphabet Be the World's Next $4 Trillion Stock?

Core Insights - Alphabet's stock has increased by 48% this year, driven by AI advancements that enhance revenue growth in key sectors like Google Search and Google Cloud [1][9] - The company has a market capitalization of $3.4 trillion and needs an additional 18% stock gain to reach a $4 trillion valuation, joining Nvidia, Microsoft, and Apple [2] Google Search Transformation - Concerns arose in early 2023 that OpenAI's ChatGPT could divert traffic from Google Search, which generates over half of Alphabet's total revenue [4] - Alphabet has modernized Google Search with features like AI Overviews and AI Mode, utilizing its Gemini large language models that outperform competitors [5] - AI Overviews provide comprehensive responses by integrating text, images, and links, enhancing user experience and convenience [6] User Engagement and Revenue Growth - AI Overviews are utilized by over 2 billion users monthly and monetize similarly to traditional Google Search ads, indicating no cannibalization of existing revenue streams [7] - In Q3 2025, Google Search achieved a record revenue of $56.5 billion, reflecting a 14.5% year-over-year increase, accelerating from previous quarters [8]