Prediction: This AI Stock Could Be the Next $4 Trillion Company in 2026

By Will Healy – Dec 17, 2025 at 5:30PM ESTKey PointsAlphabet's market cap has come out of nowhere to surpass Microsoft's.Massive investments in its technology and the release of Gemini 3 have dramatically changed perceptions about the Google parent.Alphabet has the second-lowest P/E ratio in the "Magnificent Seven."These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: GOOGLAlphabetMarket Cap$3.7TToday's Changeangle-down(-3.22%) $9.88Current Price$296.69Price as of December 17, 2025 at 3:58 PM ETDon't count out the reemerging search and artificial intelligence (AI) giant.Many investors were shocked when Nvidia became the first company to achieve a $4 trillion market cap. The competition for the world's largest market cap was long a contest between Apple and Microsoft, so to see Nvidia emerge out of nowhere likely came as a surprise. Now, the question is, which company is the next to achieve a $4 trillion market cap? Today, Apple has already achieved that, but instead of Microsoft (which previously reached that point before retreating), I believe another emerging company will be the next one to reach this milestone. Here's why. Image source: Alphabet. The next $4 trillion company Today, the stock most likely to reach $4 trillion and stay above that point is Alphabet (GOOGL 3.22%) (GOOG 3.14%). Currently, its market cap is at $3.7 trillion, surpassing Microsoft's current $3.5 trillion market cap. That choice may come as a surprise to some investors. As recently as spring 2025, the Google parent's market cap was under $2 trillion. Data by YCharts. Alphabet stock had long been smaller than many of its "Magnificent Seven" peers, as the rise of ChatGPT weighed on the stock. When GPT-4 came out in 2023, investors soured on Google Search, and its market share had fallen below 90% for the first time in decades.Advertisement At that point, not only did ChatGPT offer more thorough and concise results, but it bypassed the advertising ecosystem that had long served as the primary source of the Google parent's revenue. The company released Google Gemini later that year. Still, Gemini did not initially stand out from the likes of Claude, Grok, Copilot, and numerous other AI platforms trying to unseat ChatGPT. Also, investors should remember that Alphabet has long worked to reduce its dependence on advertising for revenue. In recent years, Google Cloud has claimed an increasing share of the revenue. Still, even though Alphabet was an early pioneer in artificial intelligence (AI), these efforts did not seem to impress investors. What changed? However, Alphabet has long benefited from a massive level of liquidity and considerable free cash flows. In late 2024, it pledged to spend $75 billion on capital expenditures (capex) in 2025, later raising that to the $91 billion-$93 billion range. Much of that spending has gone into improving legacy products. Search now incorporates AI-driven results, and Google Cloud offers upgraded infrastructure, multimodality AI models, and new tools for developers. Additionally, AI should help to make Waymo a source of revenue as it seeks to compete in the autonomous driving space. Nonetheless, it seems to be the release of Gemini 3 in November that has captured the most attention recently. With improved reasoning, coding, and multimodal understanding, some analysts claim it is "better than ChatGPT." With that, the stock is up more than 60% over the last year, and more than 110% from its April low. Not surprisingly, almost half of that increase has occurred since October. ExpandNASDAQ: GOOGLAlphabetToday's Change(-3.22%) $-9.88Current Price$296.69Key Data PointsMarket Cap$3.7TDay's Range$296.00 - $308.1252wk Range$140.53 - $328.83Volume1.8MAvg Vol36MGross Margin59.18%Dividend Yield0.27% Moreover, despite these gains, it is the second-cheapest Magnificent Seven stock. Its P/E ratio of around 30 is undercut only by Meta Platforms, a stock trading at 28 times earnings. That comparative discount could give investors all the more reason to continue buying stock in the Google parent. Data by YCharts. Alphabet at $4 trillion (and beyond) Between the relatively low valuation and the newfound success of Gemini 3, Alphabet appears likely to reach $4 trillion next. Ultimately, investors like winners in cutting-edge technologies, and amid Alphabet's massive investments, having Gemini 3 perceived as "better than ChatGPT" positions Alphabet stock for higher moves. Additionally, the AI pioneer is aggressively applying the technology to Google Cloud, and its efforts with Waymo could begin to bear fruit soon. As investors notice the stock as undervalued relative to peers, it continues to benefit from numerous tailwinds. Amid such successes, Alphabet may not only reach $4 trillion, but could challenge Apple and Nvidia for the world's largest market cap.About the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.

Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingRead NextDec 17, 2025 •By Lee Samaha2 AI Stocks to Buy and 1 to AvoidDec 17, 2025 •By Keithen DruryIs Alphabet a Top Artificial Intelligence Stock to Buy for 2026?Dec 16, 2025 •By Daniel SparksAI Infrastructure: 1 Cloud Stock Poised for Explosive GrowthDec 16, 2025 •By Keithen DruryHere Are 3 Genius Nasdaq Stocks to Load Up on Before 2026Dec 16, 2025 •By Trevor Jennewine2 Artificial Intelligence (AI) Stocks to Buy Before They Soar to $5 Trillion in 2026, According to Wall StreetDec 16, 2025 •By Sean Williams3 Artificial Intelligence (AI) Stocks Billionaires Can't Stop Buying Ahead of 2026