Nvidia has surged to become the largest company in the world by market capitalization, which now stands at around $4.6 trillion. With the rapid expansion in the AI accelerator market, it’s hard to see any competitors effectively challenging Nvidia’s position in the near future.
That said, there are still contenders, like Advanced Micro Devices, that could potentially close the gap. If Nvidia’s growth slows, these companies might just have a shot at taking the lead in market cap.
After Google’s parent company, Alphabet, released its large language model, GPT-4, it acknowledged that it might have missed the boat on certain AI advancements. Google’s search engine market share dipped below 90%, and its AI efforts frequently bypassed its lucrative advertising business, which has been crucial for revenue.
However, Alphabet has a history of being at the forefront of AI and consistently invests heavily in innovation. The company is expected to allocate between $91 billion and $93 billion for capital investments in 2025 alone.
Recently, Google’s Gemini has been enhanced, boosting its competitiveness against ChatGPT and other AI technologies. Furthermore, Google Cloud is experiencing swift growth, and Waymo seems to be establishing itself as a frontrunner in self-driving technology.
What’s interesting is that Alphabet has the capacity to support such investments, boasting over $98 billion in liquidity as of Q3 2025. It also generated around $74 billion in free cash flow in the past year.
In fact, Alphabet’s stock has increased nearly 65% over the past year, signaling that maybe it’s not too late for investors to get in. With a price-to-earnings (P/E) ratio of 31, it is the most reasonably priced among the Magnificent Seven, right behind Meta Platforms. If it matched Nvidia’s current P/E ratio of 46, Alphabet would already be the largest by market cap.
As Alphabet and Nvidia continue to push boundaries, it’s conceivable that Alphabet could eventually overtake Nvidia in terms of market capitalization.
