Alphabet Nears Global Market Cap Leadership as Nvidia Slips

Alphabet is on the verge of surpassing Nvidia to become the most valuable company globally, with its market capitalization currently exceeding $4.6 trillion. This surge follows a strong quarterly performance, highlighted by Google Cloud revenue topping $20 billion and a 140% gain over the past year. The potential shift comes as Nvidia, currently valued under $4.9 trillion, faces immediate headwinds. The AI leader's shares have declined more than 6% over two days, triggered by reports that its partner, OpenAI, missed internal growth and revenue targets. For Alphabet to claim the top spot, the stock needs to rise approximately 4% to reach roughly $401 per share. Options traders are pricing in a 53% probability that Alphabet will hit this level at some point between now and May 15. The timing is critical, as Nvidia is scheduled to report earnings on May 20. Data from ThinkOrSwim suggests a 30% probability that Alphabet will close above $400 on May 22, the Friday following Nvidia's report, potentially cementing a leadership change. If successful, this would mark the first time Alphabet has held the title of the world's most valuable company since 2016, when it briefly overtook Apple.