Alphabet tops Apple as world's second-most valuable company

Google parent Alphabet Inc has overtaken iPhone maker Apple Inc to become the world's second-most valuable company by market capitalisation, underscoring investor confidence in its artificial intelligence strategy.

Alphabet's shares rose 2.4% on Wednesday, lifting its market value to about USD3.89 trillion and edging past Apple's USD3.85 trillion valuation. The gap widened further on Thursday as Alphabet shares continued to climb while Apple stock slipped again.

Apple's decline followed a six-day losing streak that erased nearly 5% of its market value, equivalent to almost USD200 billion.

The contrasting performance highlights how differently investors are viewing the two tech giants' near-term growth prospects.

Alphabet's resurgence on Wall Street marks the first time since 2019 that it has overtaken Apple in market capitalisation. Analysts point to Alphabet's aggressive push into artificial intelligence as a key driver of its rally.

From generative AI models to expanding AI tools across Search, Cloud, and productivity products, the company is increasingly seen as one of the biggest beneficiaries of the AI boom.

Meanwhile, Apple has faced pressure amid concerns about slowing hardware demand and questions over the pace of its AI rollout. While Apple remains one of the world's most valuable companies, Alphabet's ascent reflects shifting market sentiment as AI becomes a central force shaping Big Tech valuations.