By Nate Wolf

Move aside, Microsoft. Google is claiming a place on the market value podium.

Alphabet, Google's parent company, was on pace to surpass Microsoft as the third-largest U.S. company by market capitalization on Friday. Nvidia and Apple rank first and second, respectively.

Alphabet stock was up 2.8% in midday trading, giving it a market cap of $3.6 trillion. Microsoft stock fell 1.3%, bringing its value to $3.5 trillion. If those moves hold, Friday would mark the first session since Aug. 30, 2018, that Alphabet finished with a market cap greater than Microsoft's, according to Dow Jones Market Data.

The milestone says more about Google's successes than Microsoft's struggles. Microsoft stock has stagnated since the summer, but shares remain up 11% this year, in line with the S&P 500.

Alphabet stock, meanwhile, has surged 59% in 2025, driven by strong earnings, excitement around artificial intelligence, and a federal antitrust ruling against Google that could have been much worse.

Alphabet was a Barron's stock pick a year ago this coming Saturday.

The stock has also emerged from this fall's AI selloff relatively unscathed. Alphabet shares are up 23% since the start of October, while the S&P 500 is in the red. A new Gemini AI model and better third-quarter earnings than expected have helped.

Now that Google has passed Microsoft, the next milestone is Apple and its $3.9 trillion market cap. If 2026 is anything like 2025, investors won't have to wait long.

Write to Nate Wolf at nate.wolf@barrons.com

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November 21, 2025 12:05 ET (17:05 GMT)

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