
Alphabet officially overtook Microsoft in market capitalization on Friday, November 21, 2025, reaching approximately $3.62 trillion compared to Microsoft’s $3.52 trillion the first time the Google parent has surpassed its longtime rival in market value since 2018. The milestone caps a remarkable year for Alphabet, which has seen its stock surge 59% in 2025, outperforming every other member of the so-called “Magnificent Seven” tech giants.
The shift in market dominance reflects more than just stock price momentum. Alphabet’s resurgence has been powered by robust advertising revenue, accelerating cloud growth, breakthrough AI innovations, and a high-profile vote of confidence from Warren Buffett, whose Berkshire Hathaway disclosed a $4.9 billion stake in the company. Meanwhile, Microsoft faces headwinds from elevated capital expenditures on AI infrastructure and sector rotation as investors reassess valuations after an intense rally.
Record Revenue Performance
Alphabet reported its first-ever $100 billion quarterly revenue in Q3 2025, with total sales reaching $102.35 billion, a 16% year-over-year increase from $88.3 billion. This historic milestone was driven by double-digit growth across all major business segments, demonstrating the company’s diversified revenue streams and operational strength.
Google advertising revenue climbed to $74.18 billion, up from $65.85 billion in the year-ago period, with Google Search & other revenues hitting $56.6 billion. YouTube advertising revenue jumped 15% to $10.3 billion, reflecting sustained advertiser demand and user engagement across video and short-form content formats. The advertising business continues to serve as Alphabet’s backbone, accounting for approximately 72% of total revenues.
Google Cloud emerged as a critical growth engine, surging 34% to $15.16 billion and significantly exceeding analyst expectations. The cloud division’s performance was driven by strong demand for AI infrastructure and generative AI solutions, with the segment ending the quarter with a $155 billion backlog. Operating income rose to $31.23 billion, up from $28.52 billion in Q3 2024, while net income surged 33% to $35 billion.
Artificial Intelligence Leadership
The launch of Gemini 3 on November 18, 2025, has significantly bolstered investor sentiment around Alphabet’s AI capabilities. Developed by Google DeepMind, Gemini 3 represents Google’s most advanced AI model to date, featuring state-of-the-art multimodal reasoning, agentic behavior, and a 1 million-token context window. The model achieved impressive benchmark scores, including 1501 Elo on LMArena, 93.8% on GPQA Diamond, and 72.1% on SimpleQA.
Google integrated Gemini 3 immediately across its entire ecosystem, including Search (AI Mode), the Gemini app, AI Studio, Vertex AI for enterprises, and Google Antigravity for developers. The rapid deployment demonstrates Alphabet’s ability to commercialize AI research at scale. CEO Sundar Pichai noted that the Gemini App now has over 650 million monthly active users, with first-party models processing 7 billion tokens per minute via API usage.
Analysts at TD Cowen maintained a Buy rating with a $335 price target, noting that “Alphabet is one of the few companies effectively capitalizing on AI-related growth throughout 2025”. The company’s full-stack AI approach from foundational models to consumer applications has positioned it as a leader in the rapidly evolving AI landscape.
Warren Buffett’s Strategic Investment
Warren Buffett’s Berkshire Hathaway acquired 17.9 million shares of Alphabet during the third quarter of 2025, representing a $4.9 billion stake or approximately 0.31% of outstanding shares. The disclosure on November 14, 2025, marked Buffett’s first major investment in Google since the company’s founding in 1998, representing a significant departure from his historically cautious approach to technology stocks.
The investment sparked immediate market reaction, with Alphabet shares climbing nearly 7% in after-hours trading following the announcement. Analysts suggest the stake was likely selected by Todd Combs or Ted Weschler, the two investment managers who increasingly shape Berkshire’s $300 billion stock portfolio, though the size of the investment indicates Warren Buffett’s personal approval.
Bill Stone, chief investment officer at Glenview Trust Company, stated that “The Alphabet purchase may signal that Berkshire is broadening its comfort zone in technology as leadership moves to the next generation”. Buffett’s endorsement offers notable validation of Alphabet’s business model, cash flow generation, and strategic positioning in the AI era.
Microsoft’s Challenges
While Alphabet has surged, Microsoft has experienced profit-taking and sector rotation, with shares retreating approximately 12% from their late-October peak near $555 to around $478. The software giant reported strong fiscal first-quarter 2026 results, with total revenue projected between $79.5 billion and $80.6 billion, but investor concerns have centered on elevated capital expenditures and AI infrastructure spending.
Microsoft’s capital expenditures soared 74% year-over-year in its fiscal first quarter, reaching approximately $35 billion, with roughly half allocated to immediate assets including Nvidia’s expensive AI chips aimed at alleviating capacity constraints. CFO Amy Hood indicated that the company expects to face capacity limitations regarding AI until at least the conclusion of the fiscal year.
Azure and other cloud services revenue rose 40% in the July-September period, exceeding analyst expectations of 38.4%, driven by robust demand for AI services. However, Microsoft projected Azure growth of 37% for the current quarter, and the aggressive AI spending trajectory expected to increase through mid-2026 has concerned some investors worried about margin compression and return on investment.
The partnership with OpenAI, which grants Microsoft exclusive access to the underlying models of ChatGPT, has been instrumental in Azure’s swift growth and bolstered competition against leading cloud provider Amazon. Nevertheless, the near-term financial impact of massive infrastructure investments has weighed on the stock despite strong revenue performance.
Market Capitalization Rankings
The market cap reshuffle leaves Nvidia as the world’s most valuable company at approximately $5 trillion, followed by Apple at around $4 trillion, with Alphabet now claiming third place at $3.62 trillion and Microsoft falling to fourth at $3.52 trillion. This represents the first time Alphabet has held a larger market capitalization than Microsoft since August 2018, according to Dow Jones Market Data.
Alphabet’s market cap has increased by 73.56% over the past year, reflecting the sustained investor confidence in the company’s growth trajectory. Since its August 2004 IPO, Alphabet’s market cap has grown from $27.24 billion to $3.6 trillion, representing a compound annual growth rate of 25.81%.
Analysts caution that market cap rankings can shift rapidly based on daily stock price movements and that short-term fluctuations may not signify permanent changes in competitive positioning. The relatively low trading volume during the recent movement suggests that risk appetite rather than widespread market reevaluation drove the shift.
Competitive Dynamics in Tech
The market cap battle between Alphabet and Microsoft underscores intensifying competition among major technology firms across AI, cloud computing, and data center infrastructure. Both companies are racing to build AI capabilities, with different strategic approaches reflecting their unique strengths and market positions.
Alphabet’s advantages include its dominant search engine platform, massive advertising business generating robust cash flow, extensive AI research capabilities through DeepMind, and rapid integration of AI features across consumer-facing products. The company has successfully monetized AI through improved ad targeting, enhanced cloud services, and premium subscription offerings.
Microsoft’s strengths lie in its enterprise relationships, Azure’s infrastructure leadership, the OpenAI partnership providing access to cutting-edge generative AI, and deep integration of AI capabilities into productivity tools like Microsoft 365 Copilot. However, the company faces the challenge of demonstrating return on investment from unprecedented AI infrastructure spending.
Investment Implications
For investors, Alphabet’s ascent reflects a confluence of fundamental business strength, technological leadership, and market sentiment. The company’s ability to generate over $100 billion in quarterly revenue while maintaining 30.5% operating margins demonstrates operational excellence and pricing power.
The 59% stock gain in 2025 represents significant outperformance compared to the S&P 500 and tech sector benchmarks. Alphabet now trades at a market cap representing over 10 times its annual revenue run rate, with the valuation supported by strong growth across advertising, cloud, and subscriptions.
Key risk factors include regulatory challenges, particularly ongoing antitrust proceedings in the United States and Europe, potential changes in digital advertising markets, competitive pressures in cloud infrastructure, and the need to demonstrate sustainable monetization of AI investments. The $3.5 billion European Commission fine in Q3 2025 highlights the regulatory risks facing the company.
Microsoft investors face different considerations, including the company’s ability to generate returns on massive AI infrastructure investments, Azure’s competitive positioning against Amazon Web Services and Google Cloud, the sustainability of OpenAI’s technological leadership, and potential margin compression from elevated capital expenditures. The projected continued increase in AI spending through mid-2026 suggests near-term pressure on profitability metrics.
Future Outlook
Looking ahead, both Alphabet and Microsoft face critical strategic decisions as the AI revolution reshapes the technology landscape. Alphabet must continue demonstrating AI monetization across its product portfolio while managing regulatory challenges and competitive threats to its core search business. The company’s ability to maintain advertising growth while scaling cloud and AI services will determine whether it can sustain its market cap advantage.
Microsoft needs to show concrete returns on its unprecedented AI infrastructure investments and prove that capacity constraints won’t limit growth opportunities. The company’s fiscal 2026 guidance and Azure growth trajectory will be closely watched by investors seeking validation of the AI spending strategy.
Industry analysts expect continued volatility in tech market cap rankings as investors assess the real-world impact of AI technologies on revenue growth, profitability, and competitive dynamics. The next wave of quarterly earnings reports will provide critical insights into whether current valuations are justified by fundamental business performance.
The broader technology sector faces questions about AI investment returns, with companies collectively spending hundreds of billions of dollars on infrastructure while monetization strategies remain uncertain. Alphabet’s success in generating immediate revenue from AI features across Search, Cloud, and the Gemini app provides a positive template for the industry.
Comparison Table: Alphabet vs Microsoft (November 2025)
| Metric | Alphabet (GOOGL) | Microsoft (MSFT) |
|---|---|---|
| Market Capitalization | $3.62 trillion | $3.52 trillion |
| 2025 Stock Performance | +59% | -12% from Oct peak |
| Q3 2025 Revenue | $102.35 billion | N/A (fiscal year) |
| Cloud Growth Rate | 34% (Google Cloud) | 40% (Azure) |
| Cloud Revenue | $15.16 billion quarterly | N/A (reported differently) |
| Advertising Revenue | $74.18 billion quarterly | Minimal (not core business) |
| Operating Margin | 30.5% | N/A (fiscal reporting) |
| Net Income (Q3) | $35 billion | N/A (fiscal quarter) |
| AI Model Launch | Gemini 3 (Nov 18, 2025) | Partnership with OpenAI |
| Capital Expenditure | Not disclosed quarterly | $35 billion fiscal Q1 |
| Major Investor | Buffett $4.9B stake | N/A |
| Cloud Backlog | $155 billion | Not disclosed |
| Key Growth Driver | AI + advertising + cloud | Azure + AI infrastructure |
| Primary Challenge | Regulatory/antitrust | High AI capex ROI |
Risk Analysis Section
Regulatory and Legal Risks
Alphabet faces substantial regulatory exposure from ongoing antitrust investigations and enforcement actions across multiple jurisdictions. The $3.5 billion European Commission fine recorded in Q3 2025 demonstrates both the frequency and financial magnitude of regulatory penalties. U.S. antitrust proceedings targeting Google’s search dominance could result in structural remedies affecting the company’s business model and competitive positioning.
Data privacy regulations including GDPR in Europe and evolving frameworks in the United States and other markets create compliance costs and potential restrictions on advertising targeting capabilities that drive revenue growth. Changes in regulatory treatment of digital advertising, including restrictions on cookies and user tracking, could impact ad effectiveness and pricing power.
Mitigation strategies: Alphabet maintains strong legal teams and regulatory compliance programs, diversifies revenue streams beyond search advertising, and invests in privacy-preserving advertising technologies that comply with emerging regulations while maintaining effectiveness.
Competitive and Market Risks
Intensifying competition from Microsoft, Amazon, and emerging players in cloud infrastructure threatens Google Cloud’s growth trajectory and market share gains. Microsoft’s Azure growing 40% and aggressive investment in AI capabilities demonstrates the competitive intensity in enterprise cloud markets.
AI-powered search alternatives and large language model applications could disrupt Google’s core search business, which generates the majority of advertising revenue. The rapid evolution of AI technology creates risks that competitors develop superior models or applications that attract users and advertisers away from Google properties.
Changes in digital advertising markets, including potential shifts in advertiser spending patterns, economic downturns affecting marketing budgets, or platform changes by partners, could impact revenue growth. YouTube faces competition from TikTok, Instagram Reels, and other short-form video platforms for user attention and advertising dollars.
Mitigation strategies: Alphabet invests heavily in AI research and development through DeepMind and other initiatives, rapidly integrates AI capabilities across products to defend competitive positions, and maintains diversified revenue streams across search, YouTube, cloud, and emerging businesses.
Technology and Execution Risks
Alphabet must successfully monetize massive AI investments while managing costs and maintaining profitability margins. The company’s $35 billion net income in Q3 2025 demonstrates current profitability, but sustaining margins while scaling AI infrastructure requires careful execution.
The Gemini 3 launch represents significant technical achievement, but translating advanced AI capabilities into revenue growth across Search, Cloud, and consumer applications requires ongoing product development and market adoption. User acceptance of AI-powered features and willingness to pay for premium AI services will determine monetization success.
Cloud infrastructure capacity constraints and the need to expand data center footprints create execution challenges and capital allocation decisions. Balancing investment in growth opportunities against shareholder return priorities requires strategic discipline.
Mitigation strategies: Alphabet leverages its strong cash flow generation to fund AI investments without excessive financial leverage, maintains rigorous product development processes with extensive testing before launches, and carefully monitors unit economics of AI services to ensure positive returns.
Valuation Risks
Following the 59% stock gain in 2025, Alphabet trades at elevated valuations that require sustained strong performance to justify. Market cap now exceeds $3.6 trillion, representing approximately 10-11x annual revenue run rate based on Q3 results.
Market cap rankings among tech giants can shift rapidly based on daily stock movements, sector rotation, and changes in investor sentiment. The relatively low trading volume during Alphabet’s recent overtaking of Microsoft suggests the shift may not reflect fundamental revaluation.
Mitigation strategies: Alphabet’s valuation is supported by strong fundamentals including 16% revenue growth, 33% net income growth, diversified business model, and leadership positions in search, advertising, and cloud. Continued execution on growth initiatives and AI monetization can support premium valuations.
Case Study: Alphabet’s AI Monetization Success
Background
In early 2025, Alphabet faced investor skepticism about its ability to compete in the generative AI era following Microsoft’s high-profile OpenAI partnership and concerns that AI-powered chatbots could disrupt Google’s search business. The company needed to demonstrate that it could both defend its core advertising revenue and capture new AI-driven growth opportunities.
Strategy Execution
Alphabet pursued a full-stack AI approach integrating advanced models across its entire product portfolio. The company launched Gemini models throughout 2025, culminating in the Gemini 3 release on November 18 with state-of-the-art reasoning capabilities. Rather than treating AI as a separate product line, Google embedded AI features directly into Search (AI Mode), Cloud services, and consumer applications.
The company maintained disciplined cost management while investing in AI, achieving 30.5% operating margins in Q3 2025 despite significant R&D expenditures. Google Cloud aggressively marketed AI Infrastructure and Generative AI Solutions to enterprise customers, building a $155 billion backlog.
Results
By Q3 2025, Alphabet demonstrated clear AI monetization across business segments:
- Search & Advertising: Google Search & other revenue reached $56.6 billion, with AI-enhanced ad targeting and new ad formats driving growth
- Cloud: Google Cloud revenue surged 34% to $15.16 billion, significantly exceeding expectations, with AI services driving enterprise adoption
- Consumer AI: Gemini App achieved 650 million monthly active users with models processing 7 billion tokens per minute via API
- Subscriptions: Over 300 million paid subscriptions across Google One, YouTube Premium, and other services provided recurring revenue
The strategy delivered the first $100 billion quarterly revenue in company history, 33% net income growth to $35 billion, and 59% stock price appreciation, the best performance among Magnificent Seven tech giants. Warren Buffett’s $4.9 billion investment validated the company’s AI strategy and business model.
Frequently Asked Questions (FAQs)
How did Alphabet overtake Microsoft in market capitalization?
Alphabet surpassed Microsoft through a combination of strong financial performance and investor sentiment shifts. The company reported its first $100 billion quarterly revenue in Q3 2025, with total sales of $102.35 billion representing 16% year-over-year growth. Google advertising revenue climbed to $74.18 billion while Google Cloud surged 34% to $15.16 billion, significantly exceeding analyst expectations.
The launch of Gemini 3 on November 18, 2025, bolstered confidence in Alphabet’s AI capabilities, with the advanced model integrated immediately across Search, Cloud, and consumer applications. Warren Buffett’s Berkshire Hathaway disclosing a $4.9 billion stake provided additional validation of Alphabet’s business model and strategic positioning.
Meanwhile, Microsoft experienced profit-taking as investors grew concerned about elevated capital expenditures reaching $35 billion in fiscal Q1 2026, representing a 74% year-over-year increase focused on AI infrastructure. Sector rotation from growth to value stocks and concerns about margin compression contributed to Microsoft shares retreating approximately 12% from late-October peaks.
What makes Alphabet’s Q3 2025 earnings historic?
Alphabet’s Q3 2025 earnings marked the first time the company exceeded $100 billion in quarterly revenue, reaching $102.35 billion a significant psychological and financial milestone. The 16% year-over-year growth was driven by double-digit increases across all major business segments, demonstrating diversified revenue strength.
Google advertising revenue grew to $74.18 billion from $65.85 billion year-over-year, with Search & other hitting $56.6 billion and YouTube ads jumping 15% to $10.3 billion. Google Cloud revenue surged 34% to $15.16 billion, exceeding analyst expectations and showcasing strong enterprise demand for AI infrastructure and generative AI solutions.
Operating income rose to $31.23 billion, while net income surged 33% to $35 billion, with earnings per share increasing 35% to $2.87. Excluding a $3.5 billion European Commission fine, operating income was up 22%, demonstrating strong underlying profitability. The cloud business ended the quarter with a $155 billion backlog, indicating sustained future revenue visibility.
What are the key features of Google Gemini 3?
Gemini 3, launched on November 18, 2025, represents Google’s most advanced AI model featuring state-of-the-art multimodal reasoning capabilities that allow processing and understanding text, images, video, and audio in a unified system. The model includes agentic behavior enabling autonomous task execution and planning, making it suitable for complex workflows and coding applications.
Technical specifications include a 1 million-token context window for processing extensive documents and conversations, Deep Think mode for enhanced reasoning on complex problems, and benchmark-leading performance with 1501 Elo on LMArena, 93.8% on GPQA Diamond, and 72.1% on SimpleQA. The model was developed by Google DeepMind and represents a significant advancement over previous Gemini iterations.
Gemini 3 launched across Google’s entire ecosystem simultaneously, including Search (AI Mode), the Gemini app for Google AI Pro and Ultra subscribers, Google AI Studio for developers, Vertex AI for enterprise customers, Gemini CLI, and Google Antigravity platform. CEO Sundar Pichai reported that the Gemini App has over 650 million monthly active users, with first-party models processing 7 billion tokens per minute via API.
How significant is Warren Buffett’s investment in Alphabet?
Warren Buffett’s Berkshire Hathaway acquiring a $4.9 billion stake in Alphabet represents his first major investment in Google since the company’s 1998 founding, marking a significant departure from his historically cautious approach to technology stocks. The investment involved purchasing 17.9 million shares during Q3 2025, representing approximately 0.31% of Alphabet’s outstanding shares.
The announcement on November 14, 2025, sparked immediate market reaction with Alphabet shares climbing nearly 7% in after-hours trading, demonstrating the weight investors place on Buffett’s investment decisions. While analysts suggest the stake was likely selected by investment managers Todd Combs or Ted Weschler, the investment size indicates Warren Buffett’s personal approval before stepping down as CEO at year-end.
Bill Stone, chief investment officer at Glenview Trust Company, noted that “The Alphabet purchase may signal that Berkshire is broadening its comfort zone in technology as leadership moves to the next generation”. Buffett’s endorsement validates Alphabet’s strong search engine and advertising business generating robust cash flow, providing scope to fund AI ambitions while maintaining financial discipline.
What challenges does Microsoft face in the AI race?
Microsoft faces significant near-term challenges despite strong Azure growth, primarily centered on elevated capital expenditures for AI infrastructure reaching $35 billion in fiscal Q1 2026 a 74% year-over-year increase. Approximately half of this spending was allocated to immediate assets including expensive Nvidia chips aimed at alleviating cloud capacity constraints.
CFO Amy Hood indicated that Microsoft expects to face AI capacity limitations until at least the end of the fiscal year, with spending projected to increase through mid-2026. Investor concerns have emerged about margin compression and demonstrating return on investment from unprecedented infrastructure spending, contributing to shares retreating approximately 12% from late-October peaks.
Despite Azure and other cloud services growing 40% in the July-September period and projected 37% growth for the current quarter, the aggressive spending trajectory has spooked some investors. Microsoft must balance capacity expansion to meet customer demand while managing profitability expectations and proving that AI services generate returns commensurate with infrastructure investments.
How have market cap rankings changed among tech giants?
The November 2025 market cap reshuffle places Nvidia as the world’s most valuable company at approximately $5 trillion, followed by Apple at around $4 trillion, Alphabet at $3.62 trillion (third), and Microsoft at $3.52 trillion (fourth). This represents the first time Alphabet has held a larger market capitalization than Microsoft since August 2018, according to Dow Jones Market Data.
Alphabet’s market cap has increased 73.56% over the past year, driven by its 59% stock price gain in 2025, the best performance among the Magnificent Seven tech giants. Since its August 2004 IPO, Alphabet’s market cap has grown from $27.24 billion to $3.6 trillion, representing a compound annual growth rate of 25.81%.
Analysts caution that market cap rankings can shift rapidly based on daily stock price movements, noting that short-term fluctuations may not signify permanent changes in competitive positioning. The relatively low trading volume during recent movements suggests risk appetite rather than widespread market reevaluation drove the shift, with upcoming technology earnings reports likely to influence future rankings.
What risks should investors consider with Alphabet stock?
Investors should consider regulatory risks as a primary concern, particularly ongoing antitrust proceedings in the United States and Europe that could result in significant fines or business structure changes. The $3.5 billion European Commission fine in Q3 2025 demonstrates the financial impact of regulatory actions on quarterly results.
Competitive pressures in core businesses represent another key risk, including potential disruption to search dominance from AI-powered alternatives, intensifying competition in cloud infrastructure from Amazon Web Services and Microsoft Azure, and challenges monetizing AI investments while maintaining advertising revenue growth. The company must balance innovation with protecting legacy revenue streams accounting for approximately 72% of total sales.
Valuation concerns merit attention as Alphabet now trades at a market cap representing over 10 times its annual revenue run rate following the 59% stock gain in 2025. Sustaining current valuations requires continued strong growth across advertising, cloud, and AI monetization. Market cap rankings can shift rapidly based on sector rotation, changes in investor sentiment, and relative performance of competing technology giants.
What is the outlook for Alphabet versus Microsoft?
Alphabet’s near-term outlook centers on maintaining advertising revenue growth while scaling cloud and AI services, demonstrating sustainable monetization of AI investments across Search, Gemini app, and enterprise products, and managing regulatory challenges without significant business disruption. The company’s $155 billion cloud backlog and 650 million Gemini App monthly active users provide visibility into future revenue opportunities.
Microsoft’s outlook depends on demonstrating concrete returns on unprecedented AI infrastructure investments, proving Azure capacity expansion supports sustained growth above 37% quarterly rates, and showing that OpenAI partnership delivers competitive advantages justifying elevated capital expenditures. The company’s projected continued spending increase through mid-2026 suggests near-term pressure on profitability metrics requiring clear communication about long-term strategic value.
Both companies face critical decisions as the AI revolution reshapes technology markets, with investors closely watching quarterly earnings reports for validation of current valuations. Industry analysts expect continued volatility in tech market cap rankings as companies collectively spending hundreds of billions on AI infrastructure prove they can generate commensurate revenue growth and profitability improvements.
Featured Snippet Boxes
What is Alphabet’s current market capitalization?
Alphabet’s market capitalization reached approximately $3.62 trillion on November 21, 2025, surpassing Microsoft’s $3.52 trillion valuation. This represents a 59% increase in Alphabet’s stock price during 2025, the best performance among the Magnificent Seven tech giants.
What drove Alphabet’s stock surge in 2025?
Alphabet’s 59% stock gain was driven by record Q3 2025 revenue of $102.35 billion, Google Cloud growth of 34% to $15.16 billion, advertising revenue reaching $74.18 billion, the launch of advanced AI model Gemini 3, and Warren Buffett’s Berkshire Hathaway disclosing a $4.9 billion stake.
How much did Warren Buffett invest in Alphabet?
Warren Buffett’s Berkshire Hathaway acquired 17.9 million shares of Alphabet during Q3 2025, representing a $4.9 billion stake or approximately 0.31% of outstanding shares. This marked Buffett’s first major investment in Google since the company’s 1998 founding.
What are the current market cap rankings for tech giants?
As of November 2025, the market cap rankings are: Nvidia at approximately $5 trillion (first), Apple at around $4 trillion (second), Alphabet at $3.62 trillion (third), and Microsoft at $3.52 trillion (fourth).
What is Google Gemini 3?
Gemini 3 is Google’s most advanced AI model, launched November 18, 2025, featuring state-of-the-art multimodal reasoning, agentic behavior, and a 1 million-token context window. It achieved benchmark scores of 1501 Elo on LMArena and 93.8% on GPQA Diamond.
Why did Microsoft’s stock decline despite strong earnings?
Microsoft shares retreated approximately 12% from late-October peaks due to investor concerns about elevated capital expenditures on AI infrastructure, which reached $35 billion in fiscal Q1 2026 a 74% year-over-year increase.
Disclaimer & Compliance Notes
Investment Disclaimer:
This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The information presented about Alphabet, Microsoft, and other companies is based on publicly available data and should not be interpreted as a recommendation to buy, sell, or hold any securities. Stock prices and market capitalizations are subject to rapid change.
Past performance does not guarantee future results. The 59% stock price appreciation mentioned represents historical performance and should not be used as a basis for predicting future returns. Market capitalization rankings can shift quickly based on daily price movements.
Investors should conduct their own due diligence, consider their financial situation and risk tolerance, and consult with a certified financial advisor or investment professional before making any investment decisions. The author and Headline Adda are not registered investment advisors and do not provide personalized financial advice.
Regulatory Compliance:
All financial data cited in this article comes from official SEC filings, company earnings reports, or reputable financial news sources. Market capitalization figures are calculated based on publicly traded share prices and outstanding share counts as reported in regulatory filings.
This content complies with financial journalism standards and does not contain material non-public information. All statements about future performance, growth projections, or strategic initiatives are based on publicly disclosed company guidance or analyst estimates from reputable financial institutions.
Data Accuracy:
Financial figures, statistics, and market data are accurate as of November 22, 2025, the date of publication. Readers should verify current data before making decisions, as stock prices, market capitalizations, and financial metrics change continuously during market hours.
Affiliate Disclosure:
This article does not contain affiliate links or sponsored content. Headline Adda maintains editorial independence and does not receive compensation from Alphabet, Microsoft, or other companies mentioned for coverage or analysis.



