Alphabet, Google's parent company, has made history by surpassing Apple’s market value for the first time since 2019, reaching over $3.88 trillion. Its stock price rose more than 2%, closing at $322.03 per share, while Apple’s market value stood at $3.84 trillion, with its stock falling over 4% in the past five days.
The increase in Alphabet’s market value reflects its distinctive AI strategy compared to other market players, including Apple, allowing it to finish the past year as one of Wall Street's best-performing stocks.
Alphabet shares surged more than 65% throughout 2025, marking their strongest annual gain since 2009, a period when the company’s stock rebounded after the global financial crisis. According to current data,Companies Market CapAlphabet has moved up to become the world’s second most valuable company.
Following its successful AI strategy execution, market confidence in Alphabet has returned, dispelling investors’ previous concerns that it lagged behind competitors.
In November last year, Alphabet launched Ironwood, the seventh-generation AI processor in its Tensor Processing Unit (TPU) line, a chip designed and developed in-house. Ironwood is seen as a new competitor challenging Nvidia’s dominance in the AI chip market, which few had previously threatened.
Then, in December, Google introduced Gemini 3, its latest AI model, which received high praise from developers and industry analysts alike.
Additionally, at the October earnings analyst meeting, Alphabet CEO Sundar Pichai highlighted the success of its AI business, noting that Google Cloud signed deals exceeding $1 billion in 2025 (up to Q3), a figure greater than the combined total of the prior two years.
Meanwhile, Apple is viewed as not fully engaging in the AI race. This week, Raymond James downgraded Apple stock, citing concerns that its share price growth may slow in 2026 amid fierce AI competition and high market expectations, especially after the delayed launch of the new AI-powered Siri version.
Source:CNBC
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