Nvidia's Dominance May End as Old-School Internet King Rises Again

Jakarta, CNBC Indonesia - Alphabet (Google) is increasingly close to displacing Nvidia as the world’s most valuable company. This demonstrates Alphabet’s efforts to remain relevant in dominating the technology sector, as the industry landscape has transformed into the artificial intelligence (AI) era.

Alphabet is beginning to catch up in the AI race. Its shares have surged and broken records due to the explosion in its cloud business and AI development efforts.

In fact, Alphabet has not held the top position as the world’s most expensive company for a long time. Alphabet last held that position in February 2016, before being overtaken by Apple.

Alphabet’s current position is increasingly crucial in the AI development landscape. Previously relying on search engine and digital advertising businesses, Alphabet is now showing its mettle as an AI service provider with its cloud platform, and as a competitor to Nvidia in the chip sector through customised processors that have already attracted clients such as Anthropic.

In recent months, Alphabet has managed to impress Wall Street with cloud business growth that far exceeds market expectations, surpassing major competitors like Amazon and Microsoft.

Alphabet’s stellar performance gives investors confidence that the hundreds of billions of dollars invested in AI will yield real rewards.

“This is actually about capital expenditure (capex) from large-scale cloud computing companies and, to a certain extent, early signs of better monetisation, especially for Alphabet, compared to the broader AI food chain, which includes data centres, power grids, and energy,” said Stephanie Link, head of investment strategy at Hightower Advisors, quoted from Reuters on Wednesday (6/5/2026).