Alphabet stock hits $255 record high as market cap tops $3.05 trillion

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Alphabet stock hits $255 record high

Highlights

- Alphabet stock surges past $250 as market cap reaches $3.05 trillion.

- RSI climbs to 89, signalling overbought conditions not seen in years.

- Alphabet momentum strengthened by AI investments and favorable antitrust court ruling.

The scale of the move has stretched technical indicators. The daily relative strength index climbed to 89, a level not seen in over seven years, reflecting heavily overbought conditions. While such readings often hint at potential exhaustion, the fundamental backdrop has kept buyers firmly engaged. The stock’s surge can be traced back to early September when an antitrust ruling lifted investor sentiment. A U.S. district court had previously found Google held an illegal monopoly in search and related advertising, and the Department of Justice sought the extreme penalty of forcing a divestment of the Chrome browser. However, Judge Amit Mehta ruled against these harsher measures, easing shareholder concerns and igniting the rally.

GOOGL stock price dynamic (March - Sept 2025). Source: Tradingview

Momentum has since been reinforced by a string of positive narratives. Alphabet has announced significant investment commitments in artificial intelligence infrastructure, including a £5 billion ($6.8 billion) pledge in the U.K. over the next two years. This builds on strong quarterly earnings and an upgraded revenue outlook, as well as optimism around Google Cloud’s growing footprint. Together, these factors have provided both near-term catalysts and long-term confidence in Alphabet’s positioning in the AI race.

Alphabet premarket gains 1.1% as stock adds to strong weekly performance

On Tuesday, September 16, the stock added to Monday’s surge, rising another 1.1% in premarket trading to reach a fresh record high of $255. This advance marks a 5.8% gain for the week to date, underscoring the strength of momentum even in technically stretched conditions.

Investors are also positioning ahead of the Federal Reserve’s policy meeting, where a rate cut is widely anticipated. Expectations of lower borrowing costs typically support higher valuations for technology companies, particularly those with heavy capital expenditure in growth initiatives like AI. This macro backdrop adds another layer of support to Alphabet’s trajectory.

Overall, GOOGL stock continues to power higher, supported by favorable court rulings, aggressive AI investment, and solid fundamentals. While technical indicators warn of stretched conditions, market appetite and macro factors suggest the rally still has room to run. The $255 level now serves as a new benchmark, and traders will be watching closely to see if momentum extends toward the next psychological threshold.

Alphabet RSI hits overbought zone and raised caution before U.S. labor market data. The stock gained 12% after an antitrust ruling cleared structural risks in Google’s business.

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