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Alphabet Overtakes Apple in Market Cap as AI Race Reshapes Big Tech

2 min readSource

Alphabet overtakes Apple in market cap for the first time since 2019, reaching $3.89 trillion as the AI race reshapes the Big Tech hierarchy in 2026.

Alphabet just dethroned Apple. In a historic shift on January 7, 2026, Alphabet shares surged 2.4%, pushing its market capitalization to $3.89 trillion. Meanwhile, Apple retreated 0.8%, ending the day at $3.85 trillion. It's the first time since 2019 that the Google parent has overtaken the iPhone maker in valuation.

Alphabet Apple Market Cap Flip: An AI Momentum Story

The market is clearly punishing companies that stall on AI. While Apple delayed its smarter Siri launch and still lacks a firm date for its upgraded AI ecosystem, Alphabet has been on a lightning-fast deployment spree. This aggressive stance earned Alphabet the title of the best-performing Big Tech stock last year, while Apple continues to struggle with its perceived lag in the generative AI race.

Nvidia Alpamayo vs Tesla's Confidence

The competition extends beyond mobile devices into autonomous driving. Nvidia CEO Jensen Huang unveiled Alpamayo, an AI reasoning model for self-driving cars, at CES 2026. Elon Musk acknowledged the potential pressure but dismissed it as a threat that won't materialize for at least 5 to 6 years. Critics, however, point to BYD—a competitor Musk once laughed at, which eventually overtook Tesla as the global EV leader in 2025.

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