Alphabet Surpasses Microsoft in Market Cap for First Time Since 2018
Alphabet's market capitalization reached $3.62 trillion on Friday, eclipsing Microsoft's $3.51 trillion valuation—marking the first time since 2018 that the Google parent company has claimed the higher position. The $110 billion gap reflects Alphabet's 58% stock surge this year, driven by robust earnings, breakthroughs in AI with its Gemini model, and favorable antitrust outcomes.
Meanwhile, Microsoft's shares have plateaued with a 13% gain in 2025, mirroring the S&P 500 but showing stagnation since mid-year. Alphabet now ranks as the third-most valuable U.S. company, trailing only Nvidia and Apple, which holds a $4.01 trillion market cap.
The divergence underscores shifting investor priorities: Alphabet's AI momentum and advertising resilience contrast with Microsoft's slower cloud growth. Friday's trading sealed the narrative, with Alphabet shares climbing 3.5% as Microsoft fell 1.3%.
