Alphabet shares climbed 2.8% on Monday, recovering from losses over the previous two trading sessions after reports that Google’s parent company is developing a next-generation artificial intelligence chip.
The stock closed above $356, reversing a 6.5% decline and adding an estimated $15 billion to the combined fortunes of Alphabet co-founders Larry Page and Sergey Brin, according to Forbes.
Investor optimism followed reports that Alphabet is working on a new AI chip, internally known as “Frozen v2,” which is expected to be up to 10 times more energy-efficient than its predecessor. The chip is reportedly being designed to power Google’s Gemini AI models more efficiently.
Alphabet shares have now gained 87.5% over the past year, including a 13% increase since the start of 2026.
The rally added an estimated $8 billion to Page’s net worth, bringing it to $288.4 billion, while Brin’s fortune rose by about $7.4 billion to $266 billion, according to Forbes. The pair remain Alphabet’s largest individual shareholders through their holdings of the company’s Class B shares.
Investors are now turning their attention to Alphabet’s second-quarter earnings, due after markets close on Wednesday. Analysts expect the company to report $117.1 billion in revenue and earnings of $2.90 per share, reflecting strong year-on-year growth driven by continued investment in artificial intelligence.
Wall Street is also watching Alphabet’s spending on AI infrastructure, with capital expenditure expected to reach about $45 billion for the quarter. Meanwhile, Google Cloud revenue is projected to jump 65% year-on-year to $22.4 billion, highlighting growing demand for the company’s AI services.
The strong market performance comes despite increasing regulatory scrutiny. Earlier this month, the European Commission ordered Google to open several Android features to competitors and share certain search data under the Digital Markets Act, a move the company argues could compromise user privacy and security.
Even with those regulatory challenges, investor confidence in Alphabet remains strong as the company continues to expand its AI capabilities and compete aggressively in the rapidly evolving artificial intelligence market.