Alphabet (GOOGL) recently surpassed a $4T market capitalization, fueling its stock to a new ATH of $337 at press time. The Google parent has been boosted by advancements in artificial intelligence (AI) and a strong Q4 performance. Alphabet was one of the best-performing companies in the S&P 500 index and Magnificent-7 grouping in 2025. Analysts are bullish in 2026 as well, and believe that GOOGL has what it takes to catch up with Nvidia (NVDA) in the market cap race.

One of the biggest catalysts that has been discussed for GOOGL stock in 2026 has been the growth of Alphabet’s Waymo. Waymo, part of Alphabet, began in 2009 as an in-house startup within Google’s X initiative and officially became Waymo in 2016. With Tesla (TSLA) dominating the robotaxi sphere in the last few years, Waymo has quietly caught on in several states in the US. Entering 2026, both Tesla and Waymo are expected to continue their expansion across the country. Should Waymo prove to be a big hit in 2026, Alphabet’s market capitalization and revenue could boom.

What Other Updates Will Fuel Alphabet (GOOGL) This Year

Another potential driver for the company’s market cap and stock could be in the AI race, which doesn’t appear to be slowing down in the new year. Alphabet was one of the biggest institutional investors in building and innovating in AI: from new data centers to projects that required investing in AI-focused companies. Google Gemini saw a boom in usage and revenue in 2025 and is due for further upgrades in 2026.

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Furthermore, Alphabet (GOOGL) and Apple (AAPL) have agreed to a new multi-year Gemini AI deal that will put the software on the next generation of Apple AI models. Per an Alphabet statement, Google’s models will power Apple’s ‌future “Apple Intelligence” features, including the revamped Siri, set to launch this year. The partnership could fuel both Apple and Alphabet, pushing the latter to a higher market capitalization and stock value.

As of January 2026, Alphabet’s market capitalization is approximately $4 trillion. Some Wall Street analysts predict Alphabet could reach a $5 trillion market cap by the end of 2026. This would require a roughly 32% increase from its early 2026 valuation, supported by sustained AI leadership and revenue growth. In addition, Analyst price targets for 2026 range from a low of $185 to a high of $400 per share. Reaching the upper end of these targets would push the market cap well beyond $4.5 trillion. Should the market cap hit $5T, GOOGL could surpass Tesla (TSLA) and even reach $500 per share.