Alphabet Surpasses Microsoft as Market Value Reaches $3.58 Trillion

Alphabet Inc. has recently surpassed Microsoft Corp. in market value, reaching an impressive $3.58 trillion. This shift occurred as Alphabet’s stock climbed by approximately 3.5% on a Friday, following a strong performance throughout the year. In comparison, Microsoft’s market value now stands at $3.52 trillion.

Strong Performance Boosts Alphabet

The surge in Alphabet’s stock price is attributed to solid quarterly results. For the third quarter of 2025, Alphabet reported revenue of $102.35 billion. The advertising segment contributed significantly, with revenues totaling $74.18 billion. Furthermore, the cloud division saw remarkable growth of 34%, generating $15.16 billion. This exceeded many analysts’ expectations.

Berkshire Hathaway’s Strategic Investment

• Berkshire Hathaway revealed a substantial investment, acquiring a $4.9 billion stake in Alphabet.
• This move has positively influenced investor sentiment and supported the stock price.

Launch of Gemini 3

On November 18, Alphabet launched its latest AI model, Gemini 3. This model is integrated into its search platform, the Gemini app, and cloud tools, which has also contributed to the positive market response.

Microsoft’s Recent Challenges

In contrast, Microsoft has faced some challenges. The company’s stock has declined by approximately 12% from its peak in late October, falling from around $555 to about $478. Investors have shifted focus towards value stocks, and there are growing concerns about Microsoft’s significant spending on new AI technologies, projected to reach $35 billion in the current quarter.

Microsoft’s Financial Outlook

• Microsoft still reported robust results in its fiscal first quarter of 2026, with Azure revenues increasing by 37%.
• However, investors are apprehensive about whether the returns will justify the heavy investments.

Market Position of Tech Giants

As the competition heats up, Nvidia retains the top position with a market value near $5 trillion, followed by Apple at around $4 trillion. Alphabet now ranks third, with Microsoft in fourth place, reflecting a significant realignment in the tech industry.

To better understand the market dynamics, investors can utilize tools like TipRanks’ Comparison Tool. This resource enables users to analyze the performance of these leading companies side by side.