Alphabet dethrones Apple as the world’s second-most valuable company

Driven by rapid advances in artificial intelligence and strong investor confidence, Google parent Alphabet has surpassed Apple in market value for the first time since 2019, underscoring a shifting power balance among global technology giants.

Alphabet Inc., the parent company of Google, has climbed past Apple to become the world’s second-most valuable company by market capitalisation, reflecting the market’s growing confidence in its artificial intelligence-led strategy. According to a Bloomberg report, Alphabet’s valuation rose to $3.89 trillion on Wednesday and further increased to $3.92 trillion by Thursday. During the same period, Apple’s market capitalisation slipped to around $3.80 trillion.

This milestone marks the first time since 2019 that Alphabet has overtaken Apple in market value, highlighting a notable reshuffle at the top of the global technology rankings. Nvidia continues to hold the top position, with its valuation touching $4.49 trillion as of Thursday.

AI momentum fuels Alphabet’s rise

Analysts attribute Alphabet’s surge largely to its accelerating progress in artificial intelligence and related infrastructure. In 2025, the company’s stock price jumped about 65%, making it the strongest performer among the so-called “Magnificent Seven” technology stocks. Market watchers expect this momentum to extend into 2026 as Alphabet continues to scale its AI offerings across consumer and enterprise segments.

At the start of January 2026, Google reportedly regained market share from OpenAI after ChatGPT saw a sharp decline in traffic following the rollout of Google’s Gemini 3 model. The advanced Gemini 3 Pro variant has been positioned as a top-tier model, while Google’s seventh-generation Tensor Processing Units (TPUs) are increasingly viewed as a viable alternative to Nvidia’s GPUs, strengthening Alphabet’s AI ecosystem.

Apple’s AI push still taking shape

Apple, meanwhile, is seen as lagging behind peers in delivering a defining AI breakthrough. However, expectations remain high for 2026, with reports pointing to a major overhaul of Siri as part of iOS 26.4. The company is also said to be exploring deeper AI integrations, including the possible use of Google’s Gemini for handling more complex tasks, signaling a renewed push to stay competitive in an AI-driven market.