LIVE MARKETS-Alphabet tops Nvidia in valuation premium
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ALPHABET TOPS NVIDIA IN VALUATION PREMIUM
In a sign of shifting market sentiment around artificial intelligence, Alphabet Inc GOOGL.O has pulled ahead of Nvidia Corp NVDA.O on a key valuation multiple.
Alphabet's shares have rallied more than 30% in the fourth quarter, pushing its market capitalization closer to $4 trillion and elevating its forward price-to-earnings (P/E) ratio of 28.6 ahead of Nvidia's 25.7.
The surge reflects increasing investor confidence in Alphabet's AI chip business, driven by the growing adoption of its proprietary Tensor Processing Units (TPUs) as a credible alternative to Nvidia’s market-dominant GPUs.
Meanwhile, reports have emerged that rival OpenAI had declared a “code red” to improve ChatGPT amid growing competition from Google's Gemini.
Alphabet is up nearly 70% year-to-date, buoyed by strong cloud growth and upbeat early reviews for its new Gemini 3 model, far outpacing AI bellwether Nvidia’s 36% gain.
Prediction market Polymarket showed increasing odds on Alphabet GOOGL.O overtaking Apple AAPL.O and Microsoft MSFT.O to become the second most valuable company after Nvidia NVDA.O by June, 2026.
(Medha Singh)
EARLIER ON LIVE MARKETS:
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INDIVIDUAL INVESTOR BULLS CHARGE, BEARS RETREAT - AAII CLICK HERE
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FIRMING FED CUT BETS BUOY STOCKS, UNDERCUT DOLLAR CLICK HERE
Wall Street indexes climb https://fingfx.thomsonreuters.com/gfx/mkt/egpbbjaqmpq/Pasted%20image%201764948594472.png
UMich inflation expectations https://www.reuters.com/graphics/USA-STOCKS/zjpqdnwonvx/umichinflation.png
Alphabet trades at premium to Nvidia 
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