Microsoft and Alphabet Poised to Surpass Apple in Market Cap by 2026, Analyst Predicts
NEW YORK – A new analysis suggests Microsoft and Alphabet are on track to exceed Apple’s market capitalization by the end of 2026, fueled by faster revenue growth and a perceived innovation gap at the iPhone maker. The prediction, published by The motley fool, highlights Apple’s lagging performance compared to its “Magnificent Seven” peers.
Over the past three years, Microsoft’s revenue has increased by 44% and Alphabet’s by 37%, while Apple’s has only grown 7.4%. This disparity is attributed to Apple’s struggles to deliver groundbreaking new products, particularly in the artificial intelligence sector. Reports indicate Apple may soon rely on Alphabet’s Gemini for its Siri chatbot, potentially paying $1 billion annually for the privilege.
Valuation also plays a role. Apple currently trades at a price-to-earnings (P/E) ratio of 36, compared to 34.5 for microsoft and 29 for Alphabet. This means Apple is trading at a premium despite its slower growth rate.
The motley Fool’s Stock Advisor analyst team has identified ten stocks they believe offer stronger investment potential than Apple, citing historical successes like recommending Netflix in 2004 (resulting in a $562,536 return on a $1,000 investment as of November 17, 2025) and NVIDIA in 2005 (yielding a $1,096,510 return on a $1,000 investment). Stock Advisor boasts an average return of 981%, significantly outperforming the S&P 500’s 187%.
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Alphabet, Apple, Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
