Alphabet Inc., the parent company of Google, has overtaken Apple Inc. to become the world’s second-most valuable company. The rise reflects strong investor confidence in Alphabet’s growth, especially in artificial intelligence (AI).
On January 8, 2026, Alphabet’s market value reached about $3.89 trillion, slightly above Apple’s $3.85 trillion. Alphabet’s shares continued to rise after this, while Apple’s slipped, confirming Alphabet’s new position in global rankings.
Despite Alphabet’s gain, Nvidia remains the world’s most valuable company, with a market capitalization of over $4.4 trillion, driven by its AI hardware and data center business.
Alphabet’s climb is largely due to its success in AI, including the Gemini 3 model and custom AI chips called TPUs. These technologies have helped Google expand from search and ads into cloud computing and AI services, attracting more investors. In 2025, Alphabet’s stock was one of the top performers among major tech companies.
Apple’s valuation has lagged because its AI efforts are slower, and investors are cautious about leadership changes. While Apple is adding AI features to its products, it has not yet matched Alphabet’s AI-driven growth.
AI is now a key factor in determining company value, and companies that lead in AI are attracting more investor attention. Alphabet’s new position highlights the importance of innovation in shaping the world’s biggest companies.