Alphabet Inc., the parent company of Google, reached a $3 trillion market capitalization for the first time on Monday, fueled by renewed investor confidence in artificial intelligence and a favourable antitrust ruling.

The company’s Class A shares rose 3.8 per cent to $250, while Class C shares advanced 3.7 per cent to $250.40, with both closing at record highs.

Including Monday’s rally, Alphabet’s shares are up more than 32 per cent year-to-date, making it the best performer among the “Magnificent 7” tech stocks and well ahead of the S&P 500’s 12.5 per cent gain.

The company now joins Apple and Microsoft in the $3 trillion club, while AI chipmaker Nvidia leads the pack with a $4.25 trillion market capitalization, according to Bloomberg.

Oracle’s strong forecast last week further fueled momentum in the AI trade.

In July, Alphabet’s cloud division reported a nearly 32 per cent increase in second-quarter revenue, beating expectations as its investments in custom chips and the Gemini AI model started delivering results.

“They still are very dependent on search, but with YouTube, Waymo, and other capabilities and products they’re working on, investors are starting to see that possibility that this isn’t just a search company anymore, this is a company that’s moving into a lot of other things,” said Dennis Dick, chief strategist at Stock Trader Network.