Is Alphabet overtaking Microsoft in terms of technology leadership? In terms of market capitalization, the Google parent has already overtaken the Windows group.
• Alphabet overtakes Microsoft in terms of market value
• Companies invest in artificial intelligence (AI)
• Analysts bullish
Alphabet has overtaken Microsoft
The most valuable companies in the world are currently the chip giant NVIDIA, followed by the iGroup Apple. Until recently, Microsoft was in third place, but the US company was recently overtaken by Google parent Alphabet in terms of market capitalization. While Microsoft is currently worth $3.55 trillion on the stock market, Alphabet is worth $3.86 trillion (as of December 4, 2025).
Alphabet shares rose by around 67.2 percent this year, while Microsoft shares rose by around 14 percent. This means that the Google parent company can have a higher market capitalization than Microsoft for the first time since 2018, reports MarketWatch.
In addition, Alphabet is showing the strongest performance of the Magnificent Seven this year: While Amazon shares have only increased by 4.4 percent, Apple shares have increased by 12.1 percent since the beginning of the year. The Meta share recorded an increase of 13.0 percent this year, while NVIDIA shares increased by 36.6 percent. Meanwhile, Tesla shares have now recovered from this year’s losses: they rose by 12.6 percent (as of December 4, 2025).
Investing in AI
Alphabet recently announced the launch of Nano Banana Pro, an image generation tool based on the latest AI model Gemini. In addition, Google has created an integrated ecosystem for the development and distribution of AI solutions, reports MarketWatch. The launch of Gemini 3 showed investors that Google is quickly catching up with OpenAI. Google is also expanding into the corporate sector with the launch of Gemini Enterprise. Gemini Enterprise is an agent-based platform for integrating AI into business processes.
Microsoft is also relying on AI: The company currently holds 27 percent of the shares in OpenAI and recently announced a new strategic partnership with NVIDIA and Anthropic, as part of which Microsoft plans to invest up to $5 billion and sell Azure computing capacity worth $30 billion to the AI company. The company’s existing presence and partnership with OpenAI optimally positions the company to capitalize on the enterprise AI solutions market, as it has “rich contextual data, cloud infrastructure, AI models and the corresponding AI fabric to orchestrate a complex AI ecosystem,” said HSBC analyst Stephen Bersey, according to MarketWatch. However, Alex Haissl, an analyst at Rothschild & Co Redburn, pointed out that while AI has boosted Microsoft’s Azure business, AI revenues require multiples of capital investment to achieve the same value as traditional cloud revenues. He also warned of a “loss of value” in the Office suite due to Microsoft’s partnerships with OpenAI and Anthropic.
Analysts bullish
The analysts are still overall confident for Microsoft. Of 35 Wall Street analysts who have given a 12-month price target for Microsoft in the last three months, according to TipRanks, 33 recommend buying, while two advise holding – there are no sell recommendations. The average price target is $629.98, with a high forecast of $700.00 and a low forecast of $500.00. The average price target represents a change of around 31 percent from the last price of $480.84.
Meanwhile, of 15 Wall Street analysts who have given a 12-month price target for Alphabet in the last three months, according to TipRanks, 14 recommend buying, while one analyst recommends holding – there are no sell recommendations here either. The average price target is $313.25, with a high forecast of $350.00 and a low forecast of $255.00. The average price target corresponds to a change of -1.6 percent compared to the last price of $318.39 (as of December 4, 2025).
Editorial team finanzen.net
By the way: Alphabet C (ex Google) and other US stocks can even be traded on finanzen.net ZERO until 11 p.m. (without order fees, plus spreads). Open a depot now for free and secure a new customer bonus!
Selected leverage products on Alphabet C (ex Google)
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on Alphabet C (ex Google)
The leverage must be between 2 and 20
Advertising