Alphabet has overtaken Apple to become the world’s second-most valuable listed company, trailing only Nvidia, as shifting investor sentiment continues to reshape global equity markets.
Shares in Alphabet, the parent company of Google, rose strongly in recent trading, lifting its market capitalisation above Apple’s for the first time in years. The move reflects growing confidence in Alphabet’s artificial intelligence strategy, cloud computing growth and advertising resilience, at a time when Apple is facing slower revenue momentum and increased scrutiny over its hardware-driven business model.
Nvidia remains firmly in first place globally, having benefited from an unprecedented surge in demand for its AI chips, which are now central to data centres, generative AI models and enterprise computing worldwide. Its dominance has effectively redefined leadership in global equity markets, placing semiconductor and AI-focused firms ahead of traditional consumer technology giants.
Alphabet’s ascent has been driven largely by investor optimism around its AI ecosystem, including advances in Google Search, YouTube monetisation, cloud services and its Gemini AI models. Analysts note that Alphabet is increasingly viewed not just as an advertising company, but as a core infrastructure player in the AI economy, competing directly with Microsoft and Amazon in cloud and enterprise services.
Apple, meanwhile, has seen its valuation come under pressure amid concerns about slowing iPhone sales, regulatory challenges in key markets and questions over the pace of its AI rollout compared with rivals. While the company remains highly profitable and maintains a loyal global customer base, investors have become more selective, favouring firms with clearer near-term AI-driven growth.
Market strategists say the reshuffle at the top of global valuations highlights a broader transition underway in the technology sector. Capital is flowing toward companies perceived as direct beneficiaries of artificial intelligence, advanced computing and data infrastructure, rather than those reliant on mature consumer hardware cycles.
Despite losing its second-place position, Apple remains one of the most valuable and influential companies in the world, and analysts caution that market-cap rankings can shift quickly with earnings surprises, product launches or regulatory developments.
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