Ge Long Hui·2026-01-08 06:11Core Viewpoint - The technology sector is witnessing a significant shift, with Alphabet's market capitalization surpassing Apple's for the first time since 2019, driven by strong performance in AI initiatives and contrasting strategies between the two companies [1][2][4]. Group 1: Market Performance - Alphabet's stock price increased by over 2%, raising its market value to $3.89 trillion, while Apple's market value settled at $3.85 trillion [1][2]. - In 2025, Alphabet's stock surged by 65%, marking its largest annual increase since the 2009 financial crisis, while Apple's stock saw a meager increase of less than 9% [4][6]. Group 2: AI Strategy and Developments - Alphabet has aggressively pursued AI advancements, launching the seventh-generation Tensor Processing Unit (TPU) Ironwood, which is seen as a potential competitor to NVIDIA's products [8]. - The release of Gemini 3 by Alphabet received positive reviews, enhancing its AI capabilities [9]. - Alphabet's cloud business has seen significant growth, with the number of contracts exceeding $1 billion surpassing the total from the previous two years [11]. Group 3: Competitive Landscape - Apple's conservative approach to AI, focusing on device-centric strategies and delaying the next-generation Siri, has raised concerns about its growth potential [13]. - Analysts have expressed worries about Apple's stagnation in innovation, leading to a downgrade in its rating by Raymond James [13]. - In contrast, Alphabet's continuous investment in AI infrastructure and ecosystem is expected to drive further growth, with projections of a 40% increase in cloud revenue [17]. Group 4: Future Outlook - Analysts predict a 24% probability that Alphabet will become the largest company globally by December 2026, trailing only NVIDIA [18]. - Despite Alphabet's momentum, some experts believe that NVIDIA's position remains unassailable in the foreseeable future [20].