If Alphabet keeps doing what it has been doing, it could claim the title of the world's second-largest company.
If Alphabet keeps doing what it has been doing, it could claim the title of the world's second-largest company.
Right now, Apple (AAPL +0.43%) and Alphabet (GOOG -2.32%) (GOOGL -2.47%) are the world's second- and third-largest companies, respectively. Apple's market cap sits just under $5 billion, while Alphabet's is $4.2 billion. While that's not an insignificant gap, I think Alphabet could close it over the next year and claim the title of the world's second-largest company.
It won't be easy, but I think there are two fronts where Alphabet can make up ground.
AI will get more positive reception
Apple and Alphabet are taking two completely different approaches to artificial intelligence. Apple really hasn't spent a whole lot on data centers or large language models, and has done almost nothing to develop its AI computing capabilities. In fact, it's planning to integrate Google Gemini into most of its products rather than spending heavily to develop its own AI model. While this may prove to be a genius strategy on Apple's part, it will limit its offerings to what Gemini is capable of.
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Furthermore, Apple's AI features have been a bit lackluster. It has yet to launch a subscription AI service, and the next-generation Siri AI assistant was just launched with iOS 27. Time will tell how this pans out, but one thing is for certain: Apple is not going all in on AI.
But that may be its selling point as an investment.
At this point, it's the only big tech stock that isn't all-in on AI. As a result, it has become a bit of a safe-haven option for tech investors who want a hedge against AI exposure. As investors start to realize the payoffs and benefits of heavy AI investment, I think the sentiment that makes that desirable will change, but it explains why Apple stock has been so resilient over the past few months.
Averytin News Financial update.