Why is this important
The placement of market capitalization leaders reflects investors’ expectations regarding the future growth sources of the largest technology companies. Alphabet’s strengthening of its position indicates that the market is increasingly linking value creation with the development and commercialization of artificial intelligence. Apple’s lag against this backdrop intensifies discussions about which business models will prove most sustainable in the new technological phase.
What happened
- Alphabet Inc. surpassed Apple Inc. and became the world’s second-largest market capitalization company.
- Alphabet’s capitalization growth is linked to the strengthening of Google’s parent company’s position in the field of artificial intelligence and the market’s positive reaction to the development of its AI directions.
Numbers and facts
- Alphabet shares grew by 2.4% on Wednesday, and the company’s market capitalization reached $3.89 trillion.
- Apple’s market capitalization after the same trading session amounted to $3.85 trillion.
- During six trading days, Apple shares fell by almost 5%, which led to a $200 billion reduction in the company’s value.
- On Thursday, Apple shares opened with a 1.2% decrease, while Alphabet shares increased by 1.1%, increasing the gap between companies.
- Since the beginning of 2025, Alphabet shares have increased by more than 65%, showing the best result among the Magnificent Seven group of companies.
Context
- Investors increasingly view Alphabet as one of the key beneficiaries of the global artificial intelligence boom.
- Positive assessments of new AI models and the development of its own computing infrastructure have reduced concerns about competition from players like OpenAI.
- As a result, the market places higher expectations on Alphabet’s future revenues compared to Apple’s traditional growth drivers.
