Microsoft just surpassed Google's parent company Alphabet in market cap for the first time in three years

Reuters/Shannon Stapleton

Microsoft CEO Satya Nadella

• Microsoft's market value was $753 billion at end of day Tuesday, surpassing Google's parent company Alphabet in valuation for the first time in three years.
• Alphabet clocked in at $739 billion Tuesday.
• Microsoft now sits as the third most valuable company in the world, with Alphabet at the number four spot.

Microsoft just surpassed Google's parent company Alphabet in market value, clocking in at the end of Tuesday's regular trading session with a market cap of $753 billion. Alphabet's end of day market value was $739 billion.

The two companies basically swapped places, with Microsoft now the third most valuable company in the world and Alphabet at the number four spot.

Apple and Amazon have the Number 1 and 2 spots, respectively. And all four companies are in the race to become the first US company ever to land a dizzying trillion dollar market cap.

Google and Microsoft have regularly swapped spots in market cap ranks over the years. But since Google restructured into the Alphabet umbrella company in 2015, Alphabet has enjoyed a comfortable lead, according to CNBC.

Both Alphabet and Microsoft's stock prices declined on Tuesday, amid a broad market selloff triggered by political turmoil in Italy.

Microsoft and Google compete directly in many businesses based on cutting edge technology, including artificial intelligence, speech recognition and cloud computing.

Earlier this month, Google showed off its latest developments, including a new visual search tools and new feature in Gmail that can finish a user's sentence before they type it, at its annual I/O developer conference.

Microsoft's recent advancements with its cloud businesses have boosted investor confidence.

Get the latest Google stock price here.