The largest company in the world right now is NVIDIA(NASDAQ: NVDA). It has a market cap of $4.5 trillion, putting it ahead of some of its big tech peers. Nvidia is clearly the favorite to remain the world’s largest company by the end of 2026, but letter(Nasdaq: Google)(Nasdaq: Google) Also a strong candidate.
Alphabet may start selling its in-house artificial intelligence computing units to outside companies, expanding its core business and posing a challenge to Nvidia. That could propel Alphabet to become the world’s largest company, but toppling Nvidia will be a tough challenge.
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Nvidia manufactures graphics processing units (GPUs). Originally used to process gaming graphics, GPUs have been used to run heavy workloads since their inception. Currently, they are the most popular choice for running artificial intelligence (AI) workloads, with Nvidia consistently coming out on top with this spend. Considering how much money AI hyperscalers plan to spend on data centers next year, their growth will continue.
After record data center capital spending in 2025, all AI hyperscalers are telling investors they may see new records in 2026. This bodes well for Nvidia, as it is the preferred computing vendor. In its third-quarter earnings report, CEO Jensen Huang noted that Nvidia’s cloud GPUs were “sold out.” Considering Nvidia’s revenue grew 62% year-over-year in the same quarter, it’s a clear indication that computing demand will rise in the coming years.
This supports Nvidia’s long-term forecast that global data center capital expenditures will reach $3 trillion to $4 trillion by 2030. If this prediction succeeds, spending plans for 2026 proceed as expected, and a new record capital expenditure is announced for 2027, Nvidia will easily become the world’s largest company by the end of 2026.
It’s no secret that Nvidia’s GPUs are expensive. As a result, many AI hyperscalers are turning to alternatives. Alphabet saw this coming years ago and developed the Tensor Processing Unit (TPU) internally while also Broadcom(NASDAQ:AVGO). When the workload is configured correctly, these TPUs can outperform Nvidia’s GPUs, delivering better performance to Alphabet’s compute units at a cheaper price. Initially, these will be used only for internal computing projects and will be available for rent through its cloud computing product, Google Cloud. However, Alphabet may consider selling these computing units to meta platform(NASDAQ: META).
This would mark a huge shift in Alphabet’s business model, potentially opening up another revenue stream if other customers emerge to use its TPUs.
Alphabet is already quite unbalanced, as most of its revenue comes from advertising-related sources. Its largest source of revenue is the Google search engine, which grew 15% in the third quarter. While the size and sophistication of Google’s search engine is impressive, it’s nothing compared to what Nvidia has to offer.
If Alphabet starts selling its TPUs externally, it could open up a lucrative business unit and provide a fast-growing alternative revenue stream. Time will tell if Alphabet does that, but if it gains a lead over Nvidia in this area in 2026 and sees its core business remain successful, Alphabet could become the world’s new largest company by the end of 2026.
While Alphabet’s investment case is compelling, I’d need to see more progress with its TPU sales before I’m willing to take Nvidia’s crown away. Currently, trends are strongly supporting the expansion of computing power. Nvidia is best positioned in the market, so I choose it to become the world’s largest company by the end of 2026.
However, if AI spending doesn’t happen at the pace most think it will, don’t be surprised if Nvidia loses its lead by 2026.
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Keithen Drury works at Alphabet, Broadcom, Meta Platforms and Nvidia. The Motley Fool has positions on and recommendations for Alphabet, Meta Platforms, and Nvidia. “Motley Fool” recommends Broadcom. The Motley Fool has a disclosure policy.
Prediction: This unstoppable AI stock will become the world’s biggest company by the end of 2026 Originally published by The Motley Fool
