The only company to have surpassed the $5 trillion market cap is Nvidia.
Currently, there are only 10 public companies in the trillion-dollar club. From highest to lowest market capitalization, these companies are Nvidia, Apple, Alphabet (GOOGL +1.31%) (GOOG +1.33%), Microsoft, Amazon, Semiconductor manufacturing in Taiwan, Metaplatforms, Broadcom, TeslaAnd Berkshire Hathaway.
Within this cohort, only Nvidia reached a valuation of $5 trillion – near the end of 2025, before sliding almost 20% from its peak. Today, it appears to be back on a more upward trajectory and boasting a still respectable market cap of $4.5 trillion.
While Nvidia could soon be knocking on the doors of a $5 trillion market value again, I predict that Alphabet could also enter this exclusive club by the end of the year.
Let’s look at some of the key catalysts awaiting Alphabet in 2026 and assess what it would take for the internet giant to take on Nvidia for the title of the world’s most valuable company.
Image source: Getty Images.
2026 will be a pivotal year for Alphabet
The charts below track Alphabet’s revenue and net profit since the start of the artificial intelligence (AI) revolution.
GOOGL Revenue (TTM) data by Y charts.
A subtle but important detail to note here is that Alphabet’s profitability has grown at a higher rate than its revenue.
Considering the tens of billions of dollars that Alphabet has invested in capital expenditures to support its artificial intelligence (AI) ambitions over the past three years, it’s incredibly impressive that the company has been able to not only maintain robust profits, but also grow them.
It’s only been in the last year or so that Alphabet’s revenue trends have started to transform. By 2025, Alphabet has proven that it can compete with its Magnificent Seven peers in almost every industry in which it operates.
The company’s new line of Android consumer electronics devices feature Gemini, Alphabet’s large language model (LLM).
Additionally, Google Cloud Platform was Alphabet’s fastest-growing business during the first three quarters of 2025. This was largely due to deals with major customers, including OpenAI and Meta Platforms, as well as growing interest in the company’s custom application-specific integrated circuits (ASICs) – called Tensor Processing Units (TPUs) – from Apple and Anthropic.
When assembled, Alphabet’s comprehensive ecosystem of next-generation hardware and software puts it on track to compete with Amazon Web Services (AWS), Microsoft Azure, Apple, Nvidia and Advanced microdevices.
My prediction for 2026 is that Alphabet will find even more ways to monetize its suite of AI products and continue to make progress against its large-cap competitors.
What will it take for Alphabet to reach a $5 trillion market cap?
As of this writing (January 6), Alphabet has a market capitalization of $3.8 trillion. To reach $5,000 billion, its stock would need to increase by 32%. For reference, that would be about half of the 65% gain the stock makes in 2025.
Today’s change
(1.31%) $4.25
Current price
$329.69
Key Data Points
Market capitalization
$3.9 billion
Daily scope
$325.85 -$330.82
52 week range
$140.53 -$330.82
Volume
832 KB
Average flight
36M
Gross margin
59.18%
Dividend yield
0.26%
Is Alphabet Stock a Buy Right Now?
During the third quarter, a number of high-profile institutional investors purchased Alphabet shares. While this activity can be seen as validating the company’s investment thesis, it is not wise to blindly follow the decisions of other investors – even Wall Street pros.
GOOGL PE Ratio data by Y charts.
Based on Alphabet’s price-to-earnings (P/E) ratio of 31, you might think the stock has become expensive. Indeed, its P/E is near its highest level since AI became the main thesis to hold the stock.
The nuance to note is that it reached this premium over a relatively short period: the stock has recovered significantly over the last six months or so.
However, if we look at it based on the forward P/E, I think the valuation story becomes clearer. Alphabet appears to be on a path to sustained acceleration in revenue growth, complemented by significant profit margin expansion. Its vertically integrated technology stack is perhaps the most underappreciated asset in the AI space. With all of this in mind, I would say that Alphabet remains valued as a maturing company rather than a growing stock.
Given this dynamic, I think Alphabet could easily reach a market cap of $5 trillion this year. I view this stock as a clear opportunity with monster potential for investors with long-term horizons.
Adam Spatacco holds positions at Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. The Motley Fool holds positions and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
