Alphabet stock on Tuesday extended its record-breaking run having well and truly joinedthe $4 trillion club Monday, underlining the Google parent’s status as the market’s new artificial-intelligence darling.
Alphabet’s Class A shares, which trade under the ticker GOOGL, rose 1.2% to $335.97, notching a five-day winning streak.
The stock closed up 1% at a new high of $331.86 the previous session after Apple and Google said they had formed an AI partnership, which lifted Alphabet’s total market capitalization past $4 trillion for the first time ever.
Chip designer Nvidia, iPhone maker Apple, and software giant Microsoft are the three other U.S. companies that have ever cracked that threshold, although none of them managed to add $1 trillion to their valuation quite as quickly.
It took Alphabet just 82 trading days to get from to get from a $3 trillion to a $4 trillion market cap, according to Dow Jones Market Data. In comparison, it took Nvidia 273 trading days, Microsoft 441 trading days and Apple 586 trading days.
Alphabet’s shares have rallied thanks to the success of Google’s Gemini AI models and tensor processing units. TPUs specialize in matrix math for deep learning, and in the right circumstances can provide a much better cost structure than Nvidia’s graphics processing units.
Alphabet stock has rallied 32% since the company first passed a $3 trillion valuation on Sept. 15. Nvidia shares are up just 4% over the same period, struggling amid concerns about the threat Google’s TPUs pose to the company’s core chip business.
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