Danny Weber
Alphabet approaches $5 trillion valuation as cloud revenue hits $20B and AI monetization ramps up. Can it overtake Nvidia as the world's most valuable company?
Alphabet, the parent company of Google, is closing in on the $5 trillion mark and could reclaim the title of the world's most valuable public company. After a sharp rally this week, its market capitalization topped $4.66 trillion, narrowing the gap with Nvidia, which currently leads amid the artificial intelligence boom.
Alphabet's rise got a boost from its latest earnings. The company posted revenue above analyst expectations, while its Google Cloud division topped $20 billion in quarterly revenue for the first time. Annual cloud revenue growth hit 63%, reinforcing investor confidence in Google's position in AI infrastructure and enterprise services.
Meanwhile, pressure is mounting on Nvidia. Shares of the AI chip maker slid more than 6% over two trading days, and its market cap fell to roughly $4.82 trillion. One reason: reports that OpenAI missed monthly sales targets for several months in 2026, while Google Gemini, in contrast, posted noticeable gains and captured market share.
If Nvidia fails to rebound after its next earnings report, Alphabet could seize the moment and take the top spot. To match Nvidia's current valuation, Alphabet's stock would need to gain roughly another 4%, reaching around $401 per share. Options traders see a fairly high probability of hitting that level in the coming weeks.
For Alphabet, it would be a symbolic return to the peak of the global stock market. The company last held the world's most valuable title briefly in 2016, when it managed to overtake Apple. Now the opportunity rests not only on Google's advertising business but also on the rapid growth of its cloud unit, Gemini, and anticipated AI monetization.
© E. Vartanyan