Alphabet hits record as valuation races toward $4t

Alphabet’s market capitalization reached US$3.8 trillion on November 25 after its stock rose over 5% to a record US$315.9.

The company, which owns Google, is set to become the fourth public firm to approach this valuation, following Nvidia, Microsoft, and Apple, though not all are currently at this level.

Alphabet shares surged almost 70% in 2024, outpacing other major tech companies.

The rally follows renewed investor confidence in Alphabet’s AI capabilities and stronger performance from its cloud division.

Berkshire Hathaway has recently invested in the company, and Alphabet’s latest Gemini 3 AI model has received positive early reviews.

The stock has also benefited from the tech sector’s resilience amid recent antitrust scrutiny in the US.

Alphabet avoided a forced sale of its Chrome browser, though a court found its search business to be an illegal monopoly, but stopped short of ordering a breakup.

Some business leaders have warned that valuations in the AI sector may be rising faster than fundamentals, sparking worries of a bubble similar to the dot-com boom.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Alphabet’s $91–$93 billion 2025 capex needs returns that back a near 70% 2024 stock gain

Alphabet will spend $91–$93 billion on capital expenditures (capex) in 2025, up 74% from $53 billion in 2024 1. About 60% goes to AI servers, with 40% for data centers and networking gear 1. The company expects another significant increase in 2026 2.
Google Cloud’s backlog rose 46% quarter over quarter to $155 billion, and it closed more $1 billion-plus deals in nine months than in the prior two years combined 2. Cloud operating margin moved from 17.1% to 23.7% year over year 3.
Investors must weigh a $3.8 trillion valuation against rising depreciation and energy costs tied to this buildout 1. Free cash flow sits at $73.6 billion over the trailing 12 months 1, while capital intensity keeps climbing 3.

Google’s three new Texas data centers open contract lanes

Texas buildout totals $40 billion through 2027 with three campuses in Armstrong and Haskell Counties, including one Haskell site with solar plus battery storage 4. Google has booked over 6.2 gigawatts in power purchase agreements (PPAs, long-term contracts to buy electricity) 5.
Contractors can tap roles through Google’s workforce development program to train 1,700 apprentices by 2030 6. Each site supports 50 to 150 full-time staff plus contractors 4.
Power providers can pitch new PPAs as Google expands supply to cover added load 7. The West Texas load zone saw 15.7% demand growth in 2024 7.