Alphabet Poised to Hit 5 Trillion Dollar Market Cap by 2028

Alphabet, the parent company of Google, is poised to become the second company after Nvidia to achieve a market value of over $5 trillion before 2028. Nvidia first reached this milestone on October 29, 2025, while Apple has briefly traded above this level but not closed above it. Alphabet came close to this mark when its shares reached a record high of $402.62 on May 13, 2026, valuing the company at around $4.86 trillion.

The company's strong profit growth is the driving force behind this prediction. Alphabet's operating income increased by 30% year over year in both the first and second quarters of 2026. Google Cloud, in particular, showed significant growth, with revenue surging 82% to $24.8 billion and operating margin improving to 35.6%. The company's chief financial officer, Anat Ashkenazi, noted that revenues from TPU systems delivered to customers' data centers are expected to materialize in 2027.

However, depreciation expenses pose a risk to this optimistic outlook. Alphabet's depreciation expense rose 42% year over year in the second quarter, and the company has significant property and equipment not yet in service that will begin depreciating. Management also anticipates increased capital spending in 2027, which could impact profit growth. Despite this risk, the company's current profit growth trajectory suggests it could reach the $5 trillion mark before 2028.

Alphabet's stock is currently trading at around 23 times expected 2027 earnings, which is considered fair for a company with such rapid profit growth. The prediction hinges on the company's ability to maintain profit growth rates of around 15% annually. If depreciation expenses rise faster than expected, this could push profit growth below the target, but the current outlook remains positive.