Alphabet Inc. (NASDAQ:GOOGL) just pulled off one of the most dramatic power moves in Big Tech this year: it overtook Microsoft Corp. (NASDAQ:MSFT) to become the world's third most valuable company.
But this isn't just about stock charts—it's a story about who's actually winning the artificial intelligence war.
In November alone, Alphabet's stock has exploded 17% higher through Nov. 25, putting the company on track for its best month since July 2009. Meanwhile, Microsoft is down 11%—its worst performance since September 2022.
That 28-point spread is the biggest single-month performance gap between the two since April 2008.
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Alphabet On Track For Biggest Monthly Outperformance Over Microsoft Since 2008
Alphabet Added $1.5 Trillion In Market Value In Under 3 Months
Alphabet's market cap now sits just under $4 trillion—up from $2.5 trillion at the end of August. That's a substantial $1.5 trillion surge in under three months.
November is well on track to mark the eighth straight month of gains for Alphabet shares. Over that span, the stock is up 110%, its best 8-month return since September 2005.
Microsoft, on the other hand, has gone the other way. Since topping $4 trillion in market value in late October, it has shed more than $500 billion and now sits at $3.46 trillion.
Is Google Quietly Winning The AI Race?
The AI narrative appears to be shifting in Alphabet's favor.
According to Martin Peers, co-executive editor at The Information, Alphabet’s momentum isn't solely tied to a court's favorable antitrust ruling in September.
"More people seem to be recognizing Google has figured out AI, after a rough start," Peers said.
That perception is expected to strengthen with the upcoming release of Google's new model, Gemini 3.
Several other factors underscore Google's progress in AI. The popularity of its internally designed Tensor Processing Unit (TPU) chip, accelerating growth in Google Cloud, and the integration of AI across its search engine and Chrome browser showcase the company's end-to-end AI ecosystem.
"While we in the news media breathlessly report on every step Sam Altman takes to make OpenAI a vertically integrated AI giant, Google is already there," he said.
And while OpenAI grabs headlines with ChatGPT, it's bleeding cash. Google, in contrast, is not.
With a rock-solid balance sheet and massive cash flow, Alphabet is in a much stronger spot to invest in AI for the long haul.
The shift hasn't gone unnoticed by smart money.
Earlier this month, Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK) disclosed a $4.3 billion stake in Alphabet—a rare move into big tech that signals strong conviction in Google's long-term AI strategy.
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Image created using artificial intelligence via DALL-E.
