Alphabet surpassed Apple for the first time in five years: how betting on artificial intelligence changed the balance of power
8 January 20:39
Google’s parent company, Alphabet, has surpassed Apple in market capitalization for the first time since 2019.
This was reported by CNBC, according to "Komersant Ukrainian".
At the end of trading on January 7, Alphabet was valued at $3.88 trillion, while Apple’s capitalization was $3.84 trillion, according to CNBC. Alphabet shares rose more than 2% during the day, while Apple shares lost more than 4% over the past week.
The change in market leadership is not just symbolic
It highlights the differences in the strategies of the two tech giants, particularly in the field of artificial intelligence, which is increasingly determining how investors value companies.
Alphabet ended 2025 among Wall Street’s most successful corporations, while Apple faces market skepticism about its pace of new product development.
Alphabet’s bet on AI
Analysts attribute Alphabet’s growth to its aggressive expansion in the field of artificial intelligence:
- in November, the company unveiled the seventh generation of Ironwood tensor processors, which are seen as a potential alternative to Nvidia chips;
- in December, Google presented Gemini 3, a new AI model that has received positive reviews;
- Google’s cloud business is growing rapidly: according to CEO Sundar Pichai, by the third quarter of 2025, the company had signed more contracts worth over $1 billion than in the previous two years combined.
As a result, Alphabet’s shares rose 65% in 2025, the company’s sharpest annual growth since 2009.
Apple’s problems
Apple, on the other hand, remains outside the active AI race that began after the launch of ChatGPT in late 2022.
The company planned to introduce a new generation of Siri with artificial intelligence last year, but the release was postponed. Now Apple promises to release a “more personalized Siri” only in 2026.
Against this backdrop, investors are increasingly cautious in their assessment of the company’s prospects. This week, Raymond James analysts downgraded Apple, saying that it will be difficult for the corporation to demonstrate profit growth in 2026.
