New Delhi | Google’s parent Alphabet has reclaimed its position as the world’s second most valuable company by market capitalisation, overtaking Apple, as a sharp rally in technology stocks—fuelled by artificial intelligence—reshapes the global corporate leaderboard.
According to a report by Bloomberg, Alphabet’s market capitalisation rose to about $3.92 trillion, translating to nearly ₹325 lakh crore, by Thursday. Apple’s valuation, meanwhile, slipped to around $3.80 trillion (about ₹315 lakh crore), pushing it down to the third position. Chipmaker Nvidia continues to hold the top spot globally with a valuation of $4.49 trillion, or roughly ₹372 lakh crore.
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First time since 2019
The latest reshuffle marks the first time since 2019 that Google has overtaken Apple in market capitalisation, underlining the growing dominance of companies seen as leaders in the artificial intelligence race. Market participants say Alphabet’s resurgence reflects investor confidence in its AI strategy, cloud growth and expanding hardware ecosystem.
Alphabet’s stock has surged sharply over the past year, riding a broader rally in US technology shares. In 2025, the company’s shares climbed nearly 65%, making it one of the strongest performers among the so-called “Magnificent Seven” tech giants.
AI at the centre of the rally
Analysts attribute much of Alphabet’s recent momentum to its aggressive push into artificial intelligence. Google’s Gemini family of AI models, particularly the latest Gemini 3 and Gemini 3 Pro, has helped the company regain ground in both consumer and enterprise AI applications.
At the start of January 2026, industry trackers noted that Google clawed back market share in AI-driven web traffic after rival platforms saw a decline following major product launches. Some estimates pointed to a nearly 22% drop in traffic on competing AI services during the same period, benefiting Google’s ecosystem.
Alphabet has also strengthened its position in AI infrastructure. The company recently unveiled its seventh-generation Tensor Processing Units (TPUs), which are increasingly being viewed as a viable alternative to Nvidia’s GPUs for large-scale AI workloads. This has reinforced investor belief that Alphabet can reduce reliance on third-party chips while scaling its AI ambitions.
Nvidia still leads the pack
Despite Google’s rise, Nvidia remains the undisputed leader in market capitalisation, buoyed by relentless demand for its AI chips across data centres, cloud providers and enterprise customers. With a valuation of ₹372 lakh crore, Nvidia’s lead reflects its central role in powering the global AI boom.
Market analysts say Nvidia’s dominance also highlights how hardware, alongside software and platforms, has become critical in determining winners in the AI-driven technology cycle.
Apple faces AI questions
Apple’s slip to third place has renewed debate around the iPhone maker’s AI strategy. While Apple continues to generate strong cash flows and boasts one of the world’s most loyal consumer bases, investors have grown cautious about its relative pace in rolling out advanced AI features.
The company is expected to make a stronger AI push in 2026, with reports suggesting a major revamp of Siri as part of an upcoming iOS update. Apple is also widely believed to be exploring deeper AI integrations, including partnerships for complex task management, to close the gap with rivals.
What lies ahead
Market watchers believe Alphabet’s climb could extend further if its AI products translate into sustained revenue growth across search, cloud and enterprise services. However, competition remains intense, with Big Tech firms locked in a high-stakes race that is reshaping valuations and investor expectations.
For now, Google’s return to the No.2 spot underscores a broader shift in global markets—where leadership in artificial intelligence is increasingly determining corporate worth, sometimes more decisively than legacy product dominance.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
