The Motley Fool·2025-12-06 08:06Core Insights - Alphabet and Microsoft are projected to surpass the combined market value of Nvidia and Palantir, currently valued at $4.8 trillion, by the end of 2026 [1] Alphabet - Alphabet is the largest adtech company globally, leveraging AI to enhance consumer engagement through Google Search and YouTube [2] - The Gemini AI assistant has over 650 million monthly active users, making it the second-most popular AI assistant after ChatGPT, contributing to Alphabet's advertising revenue growth of 13% in Q3 [3] - Google Cloud is the third-largest public cloud provider, gaining 2 percentage points of market share in two years, recognized for its AI application development capabilities [4] - Revenue from products based on Google's generative AI models surged over 200% in Q3, with total cloud revenue increasing by 34%, and projected growth of 44% by 2026 [5] - Alphabet's current market value is $3.8 trillion, requiring a 29% stock increase to reach $4.9 trillion [6] Microsoft - Microsoft is the largest enterprise software company, utilizing its software dominance to monetize AI through generative AI copilots across its product suite [7][8] - Microsoft Azure is the second-largest public cloud, gaining market share and planning to double its data center footprint in the next two years to support AI infrastructure [9] - Microsoft's adjusted earnings per share increased by 21% in the latest quarter, with a current valuation of 33 times adjusted earnings, and a potential market value of $4.9 trillion if earnings grow by 21% [11] - At least seven Wall Street analysts have set target prices above $660 per share for Microsoft, indicating a market value of at least $4.9 trillion [12]