ALPHABET has become only the fourth US company to achieve a $3 trillion valuation, joining the ranks of tech giants Apple, Microsoft and Nvidia.
Alphabet shares jumped over 4% on Monday, reflecting a wave of optimism following two key developments: a lighter-than-expected antitrust judgement and surging cloud revenues fuelled by AI.
The company received a significant lift after a US federal judge ruled against the most severe penalties proposed by the Department of Justice in an antitrust case targeting Google’s dominance as a search engine.
The DOJ had sought the divestiture of the Chrome browser, but Judge Amit Mehta opted for a more moderate ruling, allowing Alphabet to retain control of both Chrome and the Android operating system.
This decision eased fears among investors of a forced breakup and reinforced Alphabet’s control on two of the world’s most widely used platforms.
The ruling also comes at a time when increasing competition from startups like Perplexity and OpenAI is reshaping the tech sector.
The ripple effects of Alphabet's surge are being felt in Ireland, where the company operates its European headquarters in Dublin and employs thousands of people.
As Alphabet grows, so too does its investment in its Irish operations, particularly in data centres and AI research.
Ireland is already a strategic tech hub for US companies due to its favourable corporate tax system and skilled workforce, which stands to benefit from increased capital inflows and economic activity linked to Alphabet’s expansion.
Alphabet’s recent rally is also being driven by the strong performance of its cloud division, which posted a 32% jump in second-quarter revenue, far exceeding Wall Street expectations.
The growth is largely due to the company's increased investment in proprietary chips and the rollout of its Gemini AI model suite, which has become central to Alphabet’s ambitions in the rapidly evolving AI space.
Gemini, Google’s flagship AI platform, is seen as critical to competing with rivals such as Microsoft-backed OpenAI.
Alphabet's $3 trillion valuation marks a big milestone nearly 20 years after Google's IPO and just over a decade since the formation of Alphabet as a holding company.
Alphabet shares are up more than 30% year-to-date, outperforming the broader Nasdaq index, which has gained around 15% over the same period.
