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Alphabet Tops $3 Trillion After Lenient Antitrust Remedy and AI-Fueled Cloud Growth

A lenient antitrust remedy cleared a major overhang, boosting confidence in Alphabet’s AI-driven cloud growth.

Overview

  • U.S. District Judge Amit Mehta declined breakup remedies, allowing Google to keep Chrome and Android while limiting default-deal exclusivity and requiring some search data sharing.
  • Shares jumped more than 4% on Monday and are up over 30% in 2025, placing Alphabet alongside Apple and Microsoft at $3 trillion, with Nvidia already above $4 trillion.
  • Google Cloud revenue grew roughly 32% year over year, helped by adoption of Gemini and in-house chips, and Alphabet signaled higher 2025 capital spending to expand AI infrastructure.
  • Wall Street turned more bullish, with Citi’s Ron Josey lifting his price target to $280 and citing faster product velocity and broader Gemini integration across Ads and Cloud.
  • Regulatory risks persist as Google faces an online advertising antitrust case and FTC probes, and it must implement the court’s data-sharing and contractual compliance requirements.