ETFs to Gain as Alphabet Nears $4 Trillion in Market Cap

Alphabet Inc. GOOGL is set to reach a market valuation worth $4 trillion for the first time when trading opens on Nov. 26, 2025, as reported by Bloomberg. The Google owner’s shares touched $323.64 yesterday, climbing a solid 1.6% in a single trading session.

Impressively, Alphabet has added roughly $2 trillion to its market capitalization over the past six months, with its share price nearly doubling.

Meta’s Investment & Other Factors Fueling GOOGL’s Rally

The latest uptick in Alphabet’s share price came after a U.S. business publication, The Information, reported that Meta Platforms META is in talks to buy and use Google's artificial intelligence (AI) accelerator chips — tensor processing units (TPUs) — in its data centers in 2027. META may also rent chips from Google’s cloud division next year.

This prospective deal, building on the growing momentum for Google’s chips in the AI industry following last month’s agreement to supply up to 1 million chips to Anthropic PBC, also presents a potential challenge to chip leader Nvidia’s NVDA market dominance.

Meanwhile, the launch of Google's Gemini 3 AI model on Nov. 18, 2025, has also boosted investor sentiment in recent weeks, contributing to the stock’s six-month rally.

Moreover, the company’s better-than-expected third-quarter results, driven by double-digit revenue growth observed in both Google Services and Google Cloud, played the role of a major catalyst in boosting its share price. Alphabet also increased its capital expenditure plan for 2025 and indicated that it expects to raise it further next year, signaling the company’s aggressive investment strategy in high-growth areas such as AI infrastructure and cloud computing. This likely boosted investor sentiment as well, as it reflects a commitment to future revenue growth — a factor that typically supports a higher stock price.

Earlier, in May 2025, during its annual I/O developer conference, Alphabet announced the rollout of "AI Mode" to all its U.S. users for Google Search, in a bid to maintain its dominance as a search engine. This must have also contributed to GOOGL’s share-price surge over the past six months, which has culminated in its current market capitalization of nearly $4 trillion.

Will GOOGL Continue Its Rally?

While Alphabet remains one of the leading providers of cloud computing infrastructure and the global leader in internet search, the company has also been rapidly expanding its presence in AI — a combination that should continue to support its share price and market value in the days ahead.

Notably, after infusing AI features across its platform, respondents are preferring the tech giant’s new AI search tools over competitors like ChatGPT.

Evidently, an Oppenheimer survey found that 60% of respondents knowledgeable about Google’s AI Mode say its results are more helpful than those of ChatGPT. Moreover, 75% of those who pay for ChatGPT rated Google’s AI Mode as more helpful than the OpenAI chatbot (as per an Investopedia report - cited in Yahoo Finance). 

This rising user preference for Google’s AI-powered search experience can translate into higher-engagement, higher-value queries that deepen its competitive moat in search, support premium ad pricing, and ultimately drive faster growth in advertising and AI-related revenues — underpinning stronger top and bottom-line expansion in the years ahead.

Moreover, following Meta’s investment in Google’s TPUs, other providers of large language models (LLMs) might also turn to Alphabet, instead of Nvidia, for their supply of accelerator chips for inferencing in the near term. To this end, two analysts from Bloomberg Intelligence have predicted that Meta’s capex of at least $100 billion for 2026 suggests it will spend at least $40-$50 billion on inferencing-chip capacity next year. This should directly benefit Alphabet through solid top- and bottom-line growth, supporting the continuation of its share price rally over the long term.

In line with this, the Zacks Consensus Estimate for Alphabet’s 2025 revenues reflects a solid 15.3% improvement over last year’s reported number, while that for earnings per share signals a 30.9% surge.

ETFs to Gain

Considering the aforementioned discussion, you may tap into the share price gain of GOOGL through the following exchange-traded funds (ETFs), wherein Alphabet has substantial weight. 

Global X PureCap MSCI Communication Services ETF GXPC

This fund, with assets worth $42.85 million, offers exposure to 25 U.S.-listed companies classified within the Communication Services sector. GOOGL holds the first spot in this fund, with 29.35% weightage. 

GXPC has gained 20.1% over the past six months. The fund charges 15 basis points (bps) as fees. 

Vanguard Communication Services ETF VOX

This fund, with assets worth $5.7 billion, offers exposure to 121 U.S. companies within the communication services sector. GOOGL holds the second spot in this fund, with 16.94% weightage. 

VOX has soared 21.5% over the past six months. The fund charges 9 bps as fees. 

Communication Services Select Sector SPDR ETF XLC

This fund, with assets worth $25.85 billion, offers exposure to 24 companies from telecommunication services, media, entertainment and interactive media & services industries. GOOGL holds the second spot in this fund, with 11.65% weightage. 

XLC has surged 14.8% over the past six months. The fund charges 8 bps as fees. 

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This article originally published on Zacks Investment Research (zacks.com).

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