Alphabet, the parent company of Google, reached a historic milestone on Tuesday as its market value soared to a record high of $1.95 trillion. Google’s stock price hit an all-time high of $159.89 per share before closing at $158.14, marking a 1.3% increase despite modest losses in the broader market.

This surge brings Alphabet closer to joining the exclusive $2 trillion club, which currently includes tech giants like Microsoft, Apple, and Nvidia, as well as Saudi Aramco. Alphabet’s stock has seen a remarkable 13% increase year-to-date and a staggering 77% jump since the end of 2022.

The company attributes its recent success to record profits driven by strong advertising revenue and investor enthusiasm for its AI capabilities. Analysts are optimistic about Alphabet’s future, with an average price target of $166 suggesting a market capitalization of $2.1 trillion.

It’s worth noting that just two months ago, Google faced a $90 billion market value drop following controversy surrounding its Gemini AI service, which produced inaccurate racial images of historical figures. Despite this setback, Google has rebounded and is now on a trajectory towards even greater success.