Alphabet Inc. has overtaken Apple Inc. to become the second-most valuable company by market capitalization, a reflection of how the Google parent has emerged as one of the most significant winners of artificial intelligence.
Shares of Alphabet rose 2.4% on Wednesday, closing with a valuation of $3.89 trillion. That allowed it to surpass Apple, which closed with a market cap of $3.85 trillion on Wednesday, following a six-day slump that erased nearly 5% — and almost $200 billion — off its value. The divergence widened further Thursday, with Apple opening 1.2% lower and Alphabet gaining 1.1%.
This is the first time Alphabet has been larger than Apple since 2019. Nvidia Corp. remains the largest stock, valued at about $4.6 trillion.
Alphabet shares have been on a tear of late, and gained more than 65% over 2025, making them the best performer among the Magnificent Seven.
Much of the strength reflects the growing view that Alphabet is well suited across a number of key aspects of AI. Rave reviews for the company’s latest Gemini AI model helped ease concerns about competition from companies like OpenAI, while its tensor processing unit chips are seen as a potentially significant driver of future revenue growth.
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