Eseandre Mordi
⬤ Alphabet has pulled significantly ahead of Microsoft in the AI competition, with new market data showing a substantial performance gap. Since ChatGPT launched on November 30, 2022, Alphabet's normalized stock performance has climbed to 316.81 compared to Microsoft's 190.29, according to Bloomberg data. The numbers paint a clear picture of Alphabet gaining ground as AI technology has evolved over the past two years.
⬤ Both companies tracked fairly close through 2023, moving almost in tandem during the early generative AI boom. But things shifted dramatically heading into 2024 and 2025. Alphabet's trajectory steepened sharply while Microsoft's growth stayed more conservative and recently started softening. The gap between them kept expanding as markets reassessed how each company was handling their AI strategies.
⬤ The performance spread tells us markets are buying into Alphabet's AI moves more enthusiastically right now. Microsoft's growth hasn't been bad, just nowhere near Alphabet's acceleration during the same stretch. Using normalized data strips away absolute price differences and focuses purely on relative gains, making the divergence stand out even more. The final 2025 numbers make it pretty obvious which company has the edge in this race.
⬤ Why this matters: relative performance in AI shapes how investors view who's leading innovation and which company has better long-term positioning. The widening gap reflects changing perceptions about execution quality and growth potential. As AI keeps developing, these trends influence broader confidence in the companies pushing the next generation of AI products and services forward.
Eseandre Mordi
