Highlights
Alphabet Inc. Surpasses Apple in Market Capitalisation
Alphabet Inc., the parent company of Google, is now the second-most valuable company in the world by market capitalisation, surpassing Apple. As reported by Bloomberg, Alphabet reached a valuation of $3.89 trillion on Wednesday and climbed to $3.92 trillion by Thursday. In contrast, Apple’s valuation dropped to $3.80 trillion. This shift is attributed to Google’s significant advancements in artificial intelligence (AI), solidifying its position as a leader in the AI sector.
Google Dethrones Apple
This marks the first occurrence since 2019 that Google has surpassed Apple, reflecting its strengthening influence in the tech landscape driven by AI innovations. While Google now holds the second position in market capitalisation, Nvidia remains at the forefront, valued at $4.49 trillion as of Thursday.
Stock Price Surge
In 2025, Alphabet experienced a remarkable 65% increase in stock price, leading the “Magnificent Seven.” The company is anticipated to maintain this momentum into 2026 and continue to be a significant player in the market.
By early January 2026, Google reclaimed market share from OpenAI after ChatGPT suffered a 22% decline in traffic with the introduction of the Gemini 3 model. Additionally, the Gemini 3 Pro model has set a new benchmark, outperforming its competitors. Google also revealed a seventh-generation accelerator, with its TPUs emerging as a viable alternative to Nvidia’s GPUs, further reinforcing Alphabet’s market standing.
Apple’s AI Developments
In terms of growth, Apple has yet to achieve significant breakthroughs in AI compared to its competitors. Nevertheless, 2026 is poised to be a transformative year for the tech giant, particularly with the anticipated launch of an enhanced Siri in iOS 26.4. Reports also suggest that Apple plans to incorporate Google’s Gemini for more complex task management.