Alphabet Poised to Surpass Nvidia in Market Value by 2026
Alphabet (NASDAQ: GOOGL), the parent company of Google, is expected to dethrone Nvidia (NASDAQ: NVDA) as the world’s most valuable company by market capitalization by 2026. Alphabet has developed its own AI accelerator chips, called Tensor Processing Units (TPUs), which are integral to its operations and are available for rent via Google Cloud. This strategic move is anticipated to significantly increase its market share in AI, as evidenced by its 650 million monthly active users on its Gemini chatbot, approaching ChatGPT’s estimate of 845 million.
Alphabet reported an impressive $127 billion in operating income over the past 12 months, compared to Nvidia’s $110 billion. With sustained revenue growth across its core services—Google Search revenue rose 14.5%, YouTube advertising grew 15%, and Google Cloud surged 34%—Alphabet is on track for continued earnings expansion, which could surpass Apple’s operating income of $133 billion next year.
