Better (Almost) $4 Trillion AI Stock to Buy Now: Microsoft or Alphabet

Better (Almost)  Trillion AI Stock to Buy Now: Microsoft or Alphabet

By Will Healy
Publication Date: 2025-12-14 17:00:00

Key Points

  • Microsoft stood out for its OpenAI investment and partnerships across the industry.

  • The emerging strength of Google Gemini has shown Alphabet can stay relevant in the AI race.

  • 10 stocks we like better than Alphabet ›

Both Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) continue to grow as they solidify their positions in the artificial intelligence (AI) industry. Amid a recent surge, Alphabet’s market cap has reached almost $3.9 trillion, while Microsoft’s has pulled back slightly to $3.6 trillion.

What’s unusual is that the Google parent was substantially smaller than the software giant until recently, when Alphabet pulled ahead. Considering that surge by Alphabet, is it the better investment among multitrillion-dollar companies in the AI realm, or should investors stick with Microsoft?

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