Over the past year, Google’s market value has increased along with its AI positioning.
Although Alphabet hasn’t outperformed Apple since 2019, Wednesday’s price movement suggests that things are about to change.
According to Dow Jones Market Data, Alphabet’s shares (GOOG) (GOOGL) increased by almost 2% on Wednesday, bringing the market capitalization of the Google parent company to $3.89 trillion. As a result, Alphabet’s value surpasses that of Apple (AAPL), which is currently valued at approximately $3.85 trillion following a little drop in its stock price.
According to Dow Jones Market Data, Alphabet was the second-most valued corporation in the United States on Wednesday for the first time since February 26, 2018. With a market valuation of over $4.6 trillion, Nvidia (NVDA) continues to be the largest American corporation.
As Google solidified its position as a leader in the AI race and increased its footprint in almost every aspect of the ecosystem, Alphabet’s stock has surged 66% in the past 12 months. The Mountain View, California-based business allayed concerns that ChatGPT and other large-language models from OpenAI might replace Google Search.
Google’s strong position in the AI battle is demonstrated by the company’s adoption of Gemini, its own LLM, which has increased since the publication of the most recent model. In an analysis published late Tuesday, Nick Jones, an analyst at BNP Paribas Equity Research, stated that Google “may be positioned to be the dominant AI platform.”
With its own tensor processing units, Alphabet is perceived by some as having the potential to challenge Nvidia’s market leadership. The company announced in October that it would supply Anthropic with up to one million of the chips, while Meta Platforms (META) is apparently thinking about utilizing TPUs in its data centers. According to D.A. Davidson analyst Gil Luria, the combined value of Google’s DeepMind and TPU businesses might be close to $1 trillion if they were spun out.
Waymo, the driverless car firm that presently dominates the US robotaxi market, is also owned by Alphabet. According to reports, Waymo is looking to raise over $15 billion at a valuation of up to $110 billion.
Apple, meanwhile, has had trouble persuading investors of its AI stance. Due to its delayed AI features, the corporation is perceived as lagging behind other major IT companies in terms of AI innovation.
