Google Hits Fresh Intraday High After Brief Surge to $330

Alphabet Inc. shares climbed to a fresh intraday high on Wednesday, rising above $322 and briefly surpassing Apple's market capitalization for the first time since 2019. The stock rose over 2% in premarket trading and continued its gains throughout the session. This marks a significant shift in valuation dynamics between the two tech giants according to CNBC.

The rally was supported by continued investor enthusiasm for Alphabet's artificial intelligence strategy, including its Gemini 3 AI model and recent enhancements to Gmail. Google introduced AI Overviews to help users manage inboxes more efficiently, while expanding features like Help Me Write and Suggested Replies according to InvestorHub.

Analysts noted that Alphabet's market cap growth reflects strong earnings momentum and strategic clarity in the AI space. The company's upcoming earnings report is expected to show year-over-year revenue growth of 15.91% and earnings per share growth of 20.47%.

Why Did This Happen?

Alphabet's valuation surpassed Apple's for the first time since 2019 due to investor confidence in its AI roadmap. The stock closed at $322.03 with a market cap of $3.88 trillion, while Apple shares fell slightly to $3.84 trillion. This shift highlights diverging strategic approaches to AI development.

The company has made several strategic AI advancements, including the launch of Ironwood, its seventh-generation AI chip, and Gemini 3. Google CEO Sundar Pichai has emphasized the growing demand for AI capabilities, noting that the company's cloud business signed more $1 billion deals in 2025 than in the two previous years combined.

How Did Markets React?

Alphabet's performance outpaced broader market indices. The S&P 500 fell 0.34% while the Nasdaq rose 0.16%. Shares of the company gained 2.45% for the session, continuing a strong performance that has seen the stock rise 65% in 2025 according to Nasdaq.

The stock's rise reflects investor optimism about the company's ability to maintain its AI momentum. Zacks Research noted that the Zacks Rank model gives Alphabet a #3 rating (Hold), with some analysts expressing cautious optimism about the stock's future performance.

What Are Analysts Watching Next?

Investors will closely watch Alphabet's upcoming earnings report for signs of sustained AI growth. Analysts expect quarterly revenue of $94.6 billion and earnings per share of $2.59. The company is also testing an AI Inbox feature that could further improve user engagement and productivity according to InvestorHub.

Market watchers will also monitor the company's ability to maintain its AI leadership position against competitors like Microsoft and OpenAI. Apple's delayed AI roadmap has left Alphabet in a stronger position to capture market share in the AI space.

Alphabet's valuation multiples remain elevated compared to its sector. The company trades at a forward P/E of 28.47, significantly above the 17.8 average for its industry. While this suggests investor optimism, it also means the stock may be vulnerable to valuation corrections if growth expectations aren't met.