Alphabet is approaching Nvidia in market value as investor confidence in the company’s artificial intelligence and cloud businesses continues to grow.
The development could place Alphabet at the top of the global market rankings for the first time since 2016, when it briefly surpassed Apple before losing the position again.
Alphabet’s recent stock rally has been fueled by strong growth in its cloud division and increasing demand for its AI services.
Google Cloud revenue rose 63% in the first quarter, beating analyst forecasts and marking the business segment’s strongest growth since Alphabet began reporting the division separately in 2020, according to LSEG data. Analysts said the company’s AI investments are beginning to show measurable returns.
Stephanie Link, chief investment strategist at Hightower Advisors, said investors are focusing heavily on AI spending trends among large cloud providers and signs that companies like Alphabet are starting to monetize those investments.
Jeff Buchbinder, chief equity strategist at LPL Financial, said demand for AI and cloud services helped drive the acceleration in Alphabet’s growth.
Alphabet is also strengthening its position in AI hardware through custom chips designed to compete with Nvidia’s products.
Google chief executive officer Sundar Pichai recently confirmed that the company had started selling its AI chips directly to certain customers, including Anthropic.
Nvidia’s market capitalization stood near $4.79 trillion on Tuesday morning, below its peak valuation of around $5.2 trillion.
Alphabet’s market value reached approximately $4.67 trillion and remained close to record highs. Alphabet shares have gained roughly 24% this year, while Nvidia shares have risen around 7%. Nvidia’s stock also weakened after reports last month indicated that OpenAI had missed targets for user growth and revenue.
Alphabet’s valuation is now larger than the combined value of Germany’s and Switzerland’s main stock markets.
The company currently trades at around 29 times forward 12-month earnings, above its five-year average of 22 and the S&P 500 average of approximately 21.
Nvidia trades at roughly 21 times forward earnings. Alphabet’s shares have climbed 65.3% during 2025 as the company continues expanding its AI strategy and competing more aggressively with OpenAI.
The stock also received support last year after a US judge ruled against breaking up Alphabet and allowed the company to maintain control of the Chrome browser and Android operating system.
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