Alphabet surpasses Apple to become the world's second most valuable company, trailing only Nvidia

Alphabet Surpasses Apple in Global Market Value

Alphabet has overtaken Apple to become the world’s second most valuable publicly traded company.

At the close of trading on Wednesday, Alphabet’s market value reached $3.89 trillion, edging past Apple’s $3.85 trillion. This marks the first time since 2019 that Alphabet, Google’s parent company, has exceeded Apple’s valuation.

The gap widened on Thursday as Alphabet’s market capitalization climbed to $3.9 trillion, while Apple’s slipped to $3.8 trillion after its shares dropped by nearly 2% during the day.

Alphabet’s AI Momentum

Google, under Alphabet, has transformed its reputation from a declining internet powerhouse to a frontrunner in artificial intelligence. While initially viewed as vulnerable to agile AI competitors like OpenAI, Google has leveraged its vast resources to reclaim a leadership position in AI, spanning both advanced software and proprietary hardware. Its Tensor Processing Units (TPUs) now pose a significant challenge to Nvidia, drawing attention from major players such as Meta and Anthropic. Google’s latest Gemini 3 AI model has also achieved top scores in industry-standard benchmarks, outperforming its competitors.

Stock Performance and Analyst Outlook

In 2025, Alphabet led the “Magnificent Seven” group of major tech stocks with a 65% increase, outpacing Nvidia’s 39% rise. Experts predict Alphabet will remain a leading performer in 2026.

Apple Faces Leadership Changes

Apple is currently navigating a series of high-profile executive exits as it prepares for the anticipated departure of CEO Tim Cook. The company has yet to establish itself as a dominant force in AI, and while it has made some strides in integrating AI into its products, investors are watching closely for the launch of its next-generation Siri assistant.

Competition with Nvidia and Future Challenges

Despite Alphabet’s recent gains, its $4 trillion valuation still trails behind Nvidia’s $4.5 trillion market cap, the current leader among AI chipmakers.

Looking ahead to 2026, Alphabet will need to demonstrate how its AI technologies are driving revenue growth, as investors increasingly scrutinize the returns on large-scale tech investments.

“Gemini’s success is clearly directionally positive, although the focus is shifting from pure model performance to product adoption and monetization,” noted Bernstein analyst Stacy Rasgon in a December report.

At the Forefront of Innovation

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