Alphabet Inc. has recently reclaimed the spotlight as its market capitalization surged past that of Apple Inc. for the first time since 2019. This milestone, achieved this week, saw Alphabet”s market cap reach $3.89 trillion, driven largely by the impressive performance of its Gemini AI technology.
In a significant move, Cantor Fitzgerald upgraded Alphabet”s stock rating to “Overweight,” increasing its price target from $310 to $370. This upgrade comes amid a heightened interest in AI capabilities, particularly as Gemini”s market share skyrocketed to over 20% from under 6% in just one year. In contrast, ChatGPT, developed by OpenAI, has seen its market share decline to under 65% from approximately 85% during the same timeframe.
As of Thursday morning, Alphabet shares traded at $324.51 in premarket hours, reflecting a 0.8% increase. Over the past 12 months, the stock has appreciated significantly, climbing by 66%, and now stands at 28.6 times forward earnings.
The analysts at Cantor Fitzgerald, led by Deepak Mathivanan, attribute this momentum to Google”s strategic integration of search, maps, and payment data, which they believe gives Gemini a competitive advantage. The growing capabilities of AI agents, which can perform complex tasks based on simple user instructions, are expected to enhance user engagement, making Gemini a more appealing option for consumers.
Recent developments, such as the launch of Google”s Nano Banana image tool in August and the Gemini 3 model in November, have further attracted users away from competitors. This shift indicates a significant shift in user preference as AI technology becomes more entrenched in daily activities.
The ongoing battle for market cap supremacy highlights the growing investor confidence in Alphabet”s AI strategy. Jefferies analysts have noted a marked increase in user engagement and downloads related to AI features across Google”s suite of consumer applications, which they predict will contribute to long-term revenue growth.
While Apple has not introduced a major AI platform since 2024, Alphabet continues to innovate rapidly, with multiple revenue streams benefiting from its AI advancements. The company”s efforts include the development of custom tensor processing units aimed at challenging Nvidia”s dominance in the AI computing space.
As Alphabet”s stock climbs and its market cap outpaces that of Apple, the implications for both companies in the AI landscape will be closely monitored by investors and analysts alike.
