alphabet (Nasdaq: Google) closes on Semiconductors giant Nvidia (Nasdaq: NVDA) is in the race to become the world’s most valuable public company, with the valuation gap narrowing to less than $200 billion.
As of press time, Alphabet’s market cap was $4.635 trillion, while Nvidia’s was $4.823 trillion, leaving a difference of about $188 billion between the two companies.
Alphabet’s rise coincided with strong upward momentum for the company’s stock, which ended the last session at $383, up more than 20% year to date.
The recent rise in Alphabet’s valuation came after stronger-than-expected first-quarter 2026 earnings.
the technology The company reported revenue of $109.9 billion, up 22% year over year, while Google Cloud revenue jumped 63% to more than $20 billion. The results boosted confidence in Alphabet’s AI strategy and sent shares soaring nearly 10% in a single trading session.
Alphabet’s momentum has been driven by the integration of AI across Google Search, Gemini Models and its broader ecosystem, while Waymo’s rapid expansion adds another growth driver beyond advertising and cloud computing.
Nvidia competition
Meanwhile, Nvidia has maintained its lead with its dominance in AI-powered GPUs, benefiting from strong demand for chips from major technology companies and cloud providers amid the global AI infrastructure boom.
However, Alphabet’s strategy differs from Nvidia’s hardware-focused approach. In addition to being one of the largest buyers of AI computing power, Alphabet also develops its own custom TPUs, giving it exposure across the entire AI stack, from infrastructure and models to applications and distribution.
Investors They increasingly view this diverse approach as a long-term advantage as AI adoption expands beyond typical training to enterprise deployment and inference.
Optimism has also fueled Alphabet’s cloud backlog, estimated at $460 billion, along with improving cloud margins and continued strength in digital advertising, prompting analysts to raise price targets following the company’s latest earnings report.
