The stock of Google parent company Alphabet (GOOG/GOOGL) is at an all-time high as investors cheer the company’s artificial intelligence products and strategy.
Alphabet is on the cusp of achieving a $2 trillion U.S. market capitalization after its share price rose 15% in the last month.
Achieving a $2 trillion U.S. market cap would be a milestone for the Silicon Valley-based technology company and put it in an elite group.
Microsoft (MSFT), Apple (AAPL) and Nvidia (NVDA) are the only other publicly traded companies whose market value is above $2 trillion U.S.
The rally in Alphabet’s stock since mid-March is a reversal. Earlier this year, the company’s share price fell on worries that its was losing the A.I. race.
In February of this year, Alphabet was forced to pause an A.I. image generation feature that created inaccurate historical depictions based on race.
Key to the turnaround has been Alphabet’s management team demonstrating that their A.I. model is enterprise-ready, and that their A.I. technology is as advanced as its competitors.
Media reports that Apple wants to add Alphabet’s Gemini A.I. technology to future versions of the iPhone have also helped to lift GOOGL stock.
Alphabet’s stock is also viewed as trading at a cheap valuation relative to its technology peers.
The company’s stock trades at 21 times forward earnings compared to 33 times at Microsoft.
Analysts are now turning their attention to Alphabet’s annual developer’s conference that is scheduled for May. The company next reports quarterly financial results on April 25.
The stock of Alphabet has increased 52% over the last 12 months and currently trades at an all-time high on a split adjusted basis of $159.41 U.S. per share.