Alphabet Inc, the parent of Google, YouTube and Cloud recently dethroned Apple Inc., and became the second most valuable company in the world after chipmaker Nvidia. Alphabet reached $3.89 trillion at close of trading on Wednesday, surging past Apple’s $3.85 trillion. On Thursday, it had a market cap of $3.9 trillion to Apple’s $3.8 trillion, widening its lead as the Cupertino giant’s share fell by roughly 2 percent in intraday trading.

CWEB analysts note that Alphabet stock is riding high above the iPhone maker currently due to its success in artificial intelligence as AI has seen a market boom.

Alphabet’s Google search engine has been a market leader from decades and the addition of its in-house generative tool Gemini has boosted the company’s market cap. Google stock has risen by approximately 66 percent this past year as Alphabet reaps additional bounties from the deployment of Gemini.

Alphabet’s Google reinvented itself by focusing on artificial intelligence and building its generative AI Gemini despite a few initial hiccups. Gemini 3, its latest AI has outperformed all its rivals recently and has boosted the company’s market cap.

Google has also strengthened its software and hardware with customization and also poured in huge investments to keep on refining its products and Gemini AI is now a leading generative AI model. 

Apple has not been able to build a viable artificial intelligence model, to date. Apple still gets most of its revenue from its flagship iPhones. Many of its research projects including the Apple car never left the shop floor.

Apple has invested heavily in its iPhones and they remain the most popular smartphones globally contributing to its bottom line as global web fans are still enamored by these phones. However, Apple still lacks diversification and has been left far behind in artificial intelligence capabilities.

Nvidia remains the most valuable company in the wold as it is the dominant chipmaker across the world.