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.
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 Bloomberg 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.
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Alphabet’s overall business is booming, thanks to AI. According to the company’s second-quarter earnings, 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.”
Alphabet and Google CEO Sundar Pichai. Photographer: Jim Lo Scalzo/EPA/Bloomberg via Getty Images
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. Market capitalization 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 first went public 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 $2.97 trillion, making it the fourth most valuable company in the world by that metric. Nvidia had the highest market value of $4.3 trillion, with Microsoft and Apple following with market capitalizations of $3.79 trillion and $3.74 trillion, respectively.
Alphabet stock has grown more than 70% this year following a market capitalization low of $1.8 trillion 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 approximately 89% 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 two billion monthly users.
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.
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 Bloomberg 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.
