Internet giant, Google has surpassed Microsoft in market value on Monday, to become the second largest technology firm in the world after rival, Apple.

The shares of Google increased 1 percent to $761.78 at the close in New York, making up an market capitalization of about $249.9 billion. On the other hand, Microsoft's shares fell less than one percent to $29.49 and valued the software giant at $247.2 billion.

Google was also able to surpass retaining giant, Wal-Mart Stores allowing it to emerge as the third largest American company behind Apple and oil company, Exxon Mobil. The shares of Google have risen by 48 per cent in the previous one year due to increasing advertising business and investor support for the company's emerging wireless business.

Citigroup had recently said in a note that the shares of the company could rise "significantly in the 12 months ahead." According to some estimates, Google is expected to surpass online Facebook and Yahoo in online display advertising. The company is expected to generate $2.31 billion in display ad revenue in the year.

Both Tony Imperati, a spokesman for Microsoft and Niki Fenwick, a spokeswoman for Google did not comment on the matter.