Alphabet has surpassed Microsoft in terms of capitalization and entered the top three most expensive companies

Alphabet, which owns Google, on Friday surpassed Microsoft in capitalization and entered the top 3 most expensive companies in the world after Nvidia and Apple. Alphabet shares rose 3.8% in trading on Nov. 21, bringing its market value to $3.6 trillion, CNBC shows . Microsoft shares, meanwhile, fell 1.1%, with its capitalization just above $3.5 trillion. If this dynamic continues, the Nov. 21 session will be the first time since Aug. 30, 2018, that Alphabet ends trading with a capitalization higher than Microsoft's, according to Dow Jones Market Data, Barron's notes.

Alphabet shares are up 59% since the beginning of the year thanks to several factors, including hype around artificial intelligence, a court ruling in an antitrust case whose outcome could be much harsher for Google and lead to the sale of its Chrome browser, and strong third-quarter reporting, Barron's writes.

After the publication of financial results in late October, Alphabet quotes rose by 10%. The company reported that for the first time in its history it exceeded the $100 billion mark in quarterly revenue - it increased by 16% in annual terms. Sales of the Google Cloud division reached $15.2 billion, adding 34%.

Interest in the tech giant's securities was fueled by legendary investor Warren Buffett's Berkshire Hathaway holding, which acquired a stake in Alphabet in the third quarter.

On November 19, the company's shares hit an all-time high after the presentation of its new AI model Gemini 3. Wall Street analysts almost unanimously greeted it with rave reviews and said that Google was pulling ahead in the race for AI leadership for the first time. As the stock surged, Google co-founder Larry Page surpassed Amazon founder Jeff Bezos to become the third richest billionaire in the world.

Forbes expects Alphabet to emphasize Gemini 3's results in its next quarterly report. Even before the announcement of the new version, MarketWatch noted that this release could be a catalyst for the company's stock to rise.

Microsoft's stock has been flat since the summer, but is still up 11% since the beginning of the year - in line with the S&P 500 index. But the fact that the company lost third place to Alphabet says more about Google's success than about Microsoft's own problems, Barron's writes .

This article was AI-translated and verified by a human editor