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The global market cap hierarchy is on the verge of a historic reshuffle as Alphabet (GOOG) (GOOGL) closes the gap with artificial intelligence (AI) darling — Nvidia (NVDA).
As of writing, the multinational’s valuation has climbed to nearly $4.7 trillion, fueled by a notable 22% rally since the start of this year, significantly outpacing NVDA’s 7% year-to-date gain.
On the back of its full-stack AI strategy and booming cloud business, Alphabet is now within striking distance of reclaiming the title of the world’s most valuable public firm for the first time since 2016.
What’s Driving Google Stock Higher in 2026?
GOOGL shares’ recent momentum is rooted in the company’s stellar Q1 earnings, featuring a 22% year-over-year increase in revenue to nearly $110 billion.
The primary engine of its growth is Google Cloud, which accelerated 63%, ending the quarter with a rather impressive $463 billion backlog that roughly doubled in just one quarter.
Among major catalysts is a $200 billion five-year commitment from AI research lab Anthropic, which has reportedly agreed to leverage both Google Cloud and the giant’s custom TPUs.
Most importantly, with the launch of the TPU 8t and 8i chips, Alphabet is no longer just a customer in the semiconductor space but a direct rival to Nvidia, offering specialized hardware that processes 16 billion Gemini tokens per minute.
JPM Sees Further Upside in GOOGL Shares
Alphabet’s eventual surpassing of Nvidia’s market cap appears increasingly likely given JPMorgan continues to see it as a “top overall pick,” set to hit $460 per share this year.
Analyst Doug Anmuth’s recently raised price target translates to a market cap of over $5.5 trillion.
His constructive outlook is predicated on GOOGL’s successful monetization of generative AI and its superior margin expansion, which exceeded 36% in the first quarter.
According to the JPM expert, Alphabet is uniquely positioned through its “full stack” approach, owning the chips, the models, and the distribution via Search and YouTube.
At less than 30x forward earnings, Google stock is attractively valued with further upside expected as AI enterprise solutions transition from pilot programs to core revenue drivers, he concluded.
What’s the Consensus Rating on Alphabet?
While not as bullish as Anmuth, other Wall Street analysts also favor owning GOOGL stock in 2026.
The consensus rating on Alphabet currently sits at “Strong Buy,” with the mean price target of $419 indicating potential upside of about 8% from here.
