Alphabet (GOOGL) Surpasses Microsoft (MSFT) with Stunning $3.58 Trillion Market Cap Milestone
The tech titan clash just got hotter—Alphabet rockets past Microsoft in the ultimate valuation showdown.
Silicon Valley's New King
Google's parent company just pulled off what Wall Street analysts called 'mathematically improbable' six months ago. The search giant's market capitalization now towers over its longtime rival, hitting that eye-watering $3.58 trillion figure that makes even the most seasoned investors do a double-take.
Beyond Search, Beyond Windows
This isn't just about advertising dollars outperforming enterprise software—it's about Alphabet's AI bets finally paying off while Microsoft struggles to monetize its AI investments beyond PowerPoint suggestions. The cloud division alone added more value last quarter than some Fortune 500 companies generate in a decade.
The Numbers Don't Lie
That $3.58 trillion valuation means Alphabet now commands roughly the GDP of Germany while Microsoft investors suddenly find themselves holding the silver medal. The shift happened faster than most analysts predicted—proving once again that in tech, today's market leader can become tomorrow's afterthought before the quarterly reports even print.
Another quarter, another record market cap that'll probably get celebrated with more stock buybacks than actual innovation—because why build the future when you can just buy back your own shares?
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The gain follows solid results from Alphabet, which posted $102.35 billion in revenue for the third quarter of 2025. The ad unit ROSE to $74.18 billion, and this helped the full result. The cloud unit grew 34% to $15.16 billion. The pace in this unit beat the view from many analysts.
In addition, sentiment grew after Berkshire Hathawayrevealed a $4.9 billion stake in the company. This MOVE added support for the stock. Soon after, Alphabet launched Gemini 3 on November 18. The model is now part of Search, the Gemini app, and Cloud tools. Early use has been positive, and this has added to the lift in shares.
Microsoft Slips
Microsoft regressed from its peak NEAR $555 and now trades near $478. The stock is down about 12% from its late October high. The slip came as some investors moved to value stocks. The slip also came as some watchers grew more wary of high spending on new systems.
Microsoft still posted sound results in its fiscal first quarter of 2026. Azure grew 37% in the period. Yet heavy spending on new AI sites, set to reach $35 billion for the quarter, raised fresh doubts. Some investors now wait to see if the return on this spend can match the plan.
As the move in both stocks plays out, Nvidia (NVDA) holds the top spot with a value of around $5 trillion. Apple is next at about $4 trillion. Alphabet now stands in third place, with Microsoft in fourth.
We used TipRanks’ Comparison Tool to line up side by side all four companies occupying the first four spots. It’s a great tool for investors to gain an in-depth look at each stock and see how it Stacks up against industry peers.
