Google parent Alphabet reached a market cap of $3 trillion on renewed optimism around artificial intelligence and a favorable antitrust ruling. Shares surged, outperforming the S&P 500, and joined Apple and Microsoft in the $3 trillion club, while Nvidia boasts a $4.25 trillion valuation. Tech and AI stocks are driving Wall Street to record highs.

Investor excitement is fueled by tech stocks leading the rally, with Oracle’s strong forecast boosting the AI trade. The communications services sub-sector, home to Alphabet, is the best-performing sector this year. The recent U.S. court ruling allowing Alphabet to keep control of Chrome and Android has reassured investors.

Alphabet’s cloud-computing unit saw a nearly 32% revenue increase in the second quarter, exceeding expectations. With investments in in-house chips and AI paying off, investors are seeing the company’s potential beyond search. This diversification is shifting perceptions of Alphabet as more than just a search company.

Read more at Yahoo Finance: Alphabet enters $3 trillion market cap club as Big Tech’s AI momentum builds