Alphabet Outshines Apple: Reaches $3.9 Trillion Market Cap

In a significant shift in Silicon Valley’s power dynamics, Alphabet (Google’s parent company) has overtaken Apple in market capitalization for the first time since 2019. Alphabet’s shares rose to close at a $3.88 trillion valuation on January 8, 2026, while Apple’s market cap settled at $3.84 trillion.

This milestone underscores the dramatically different trajectories for the two tech giants in their artificial intelligence strategies. Alphabet shares surged 65% throughout 2025—the company’s strongest performance since 2009—driven by its AI resurgence and successful product launches.

In November 2025, Alphabet unveiled Ironwood, the seventh generation of its tensor processing units. The company positioned the custom AI chip as a viable alternative to Nvidia’s dominant offerings. The company followed up in December with the introduction of Gemini 3, Google’s latest AI model. The model received widespread critical acclaim and demonstrated the company’s ability to compete at the forefront of generative AI technology.

Meanwhile, Apple has faced headwinds in the AI race. The company delayed the launch of its next-generation Siri AI assistant, which was originally slated for 2025, now promising delivery sometime in 2026. Wall Street firm Raymond James downgraded Apple stock this week, citing limited potential gains for the year ahead as the company plays catch-up in artificial intelligence capabilities.

The market cap reversal reflects investor confidence in Alphabet’s positioning at the center of the AI revolution. The company is leveraging its search dominance, cloud infrastructure, and research capabilities to maintain a competitive advantage. As of January 9, 2026, Alphabet holds a market capitalization of approximately $3.96 trillion, cementing its position as the world’s second most valuable company.

Source: CNBC