Nvidia Knocked From the Top? An Analyst Says Another Tech Titan Is the Most Valuable Company in the World.
Alphabet is the fourth most valuable company in the world by market capitalization, but an analyst says it’s actually first based on AI strength.
Key Takeaways
- A new analyst note claims that, though Nvidia is the most valuable company based on market value, Alphabet is actually the most valuable based on AI strength.
- Alphabet鈥檚 overall business is doing well, thanks to AI.
- AI is 鈥渄riving strong momentum,鈥 Alphabet and Google CEO Sundar Pichai said in a July earnings report.
Move over, Nvidia. An analyst says the actual most valuable company in the world is Google’s parent company, Alphabet.
Research publisher MoffettNathanson wrote in a note obtained by on Thursday that though Alphabet isn’t the world’s largest company by market value, it is in the running for the “most valuable company in the world” based on AI strength.
Alphabet’s “combination of market leadership, diversification and scale” makes the company “not only a winner in the GenAI era” but also “a company that should rightly be considered for the title of most valuable company in the world,” MoffettNathanson Founder and Media Analyst Michael Nathanson wrote in the note.
Related: Google Reportedly Told Its Staff to Use AI More or Risk Falling Behind: ‘It Seems Like a No-Brainer’
Alphabet’s overall business is booming, thanks to AI. According to the company’s , reported at the end of July, revenue increased 14% year-over-year to $96.4 billion, with growth across the company.
“We are leading at the frontier of AI and shipping at an incredible pace,” Alphabet and Google CEO Sundar Pichai stated in the report. “AI is positively impacting every part of the business, driving strong momentum.”
Earlier this month, Alphabet became the fourth company in the world to achieve a $3 trillion market capitalization, joining Nvidia, Microsoft, and Apple in the $3 trillion club. assesses the total value of a company by multiplying the number of company shares by its stock price. Alphabet achieved the milestone more than two decades after Google in 2004.
Related: This Is How Senior Leaders Are Using AI at Work, According to a Google Survey
At the time of writing, Alphabet’s market capitalization had diminished to , making it the fourth most valuable company in the world by that metric. Nvidia had the highest market value of , with Microsoft and Apple following with market capitalizations of and , respectively.
Alphabet stock has grown more than 70% this year following a market capitalization low of in April. Over the past month, Alphabet shares have gained over 17% in value.
Nathanson wrote in the note that Google is leading AI search. Google’s global market share in search overall has been for the past year. Last February, the company introduced AI overviews, or AI summaries of search results embedded at the top of search, which have since reached .
Related: Google CEO Sundar Pichai Says ‘You’ll Be Surprised’ By How Google Search Changes
“Google remains the one to beat in GenAI search,” Nathanson wrote in the note.
Key Takeaways
- A new analyst note claims that, though Nvidia is the most valuable company based on market value, Alphabet is actually the most valuable based on AI strength.
- Alphabet鈥檚 overall business is doing well, thanks to AI.
- AI is 鈥渄riving strong momentum,鈥 Alphabet and Google CEO Sundar Pichai said in a July earnings report.
Move over, Nvidia. An analyst says the actual most valuable company in the world is Google’s parent company, Alphabet.
Research publisher MoffettNathanson wrote in a note obtained by on Thursday that though Alphabet isn’t the world’s largest company by market value, it is in the running for the “most valuable company in the world” based on AI strength.
Alphabet’s “combination of market leadership, diversification and scale” makes the company “not only a winner in the GenAI era” but also “a company that should rightly be considered for the title of most valuable company in the world,” MoffettNathanson Founder and Media Analyst Michael Nathanson wrote in the note.
