Alphabet has overtaken Apple for the first time in five years: how its focus on artificial intelligence has shifted 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 close of trading on January 7 , Alphabet was valued at $3.88 trillion, while Apple’s market capitalization stood at $3.84 trillion, according to CNBC. Alphabet’s shares rose by more than 2% over the course of the day, while Apple’s shares lost over 4% over the past week.
This highlights the differing strategies of the two tech giants, particularly in the field of artificial intelligence, which is increasingly driving investors’ valuations of companies.
Alphabet ended 2025 among Wall Street’s most successful corporations, while Apple faces market skepticism regarding the pace of its 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 unveiled 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 secured more contracts worth over $1 billion than in the previous two years combined.
As a result, Alphabet’s stock rose 65% in 2025 —the company’s sharpest annual growth since 2009.
Apple’s Challenges
Apple, on the other hand, remains on the sidelines of the intense AI race that began after the launch of ChatGPT in late 2022.
The company had planned to unveil a new generation of Siri with artificial intelligence last year, but the release was postponed. Now Apple promises to launch a “more personalized Siri” only in 2026.
Against this backdrop, investors are becoming increasingly cautious in their assessment of the company’s prospects. This week, Raymond James analysts downgraded Apple, stating that it will be difficult for the company to demonstrate profit growth in 2026.
