Alphabet Poised to Surpass Apple in Market Cap Battle

Apple and Alphabet are two of the largest companies in the world, but only one has reached the milestone market cap of $5 trillion. Nvidia is currently the only company to have achieved this feat.

As of August 12th, Apple's market value stands at $4.4 trillion, while Alphabet's is slightly lower at $4.2 trillion. However, Alphabet's business is thriving, with Google Search revenue rising 17% year over year and overall revenue increasing by 24% in the quarter due to its successful cloud computing business.

Alphabet's growth picture looks strong, with AI computing demand on the rise and the company investing heavily in data centers. In contrast, Apple is facing a major headwind in the form of rising memory chip prices, which could meaningfully affect its business.

New CEO John Ternus will have to navigate this crisis when he takes over in September, and some analysts believe that Alphabet's business is better positioned to reach the $5 trillion mark first due to its stronger growth prospects and lower premium compared to Apple.