Apple has overtaken Nvidia to become the world’s most valuable company after investors reassessed the outlook for artificial intelligence and shifted attention across the technology sector.
Apple was valued at about $4.88 trillion on Friday as its shares held steady, while Nvidia’s market value fell to about $4.86 trillion after its stock dropped 3.5%.
The change ends Nvidia’s near one-year run at the top and marks Apple’s return as the world’s most valuable listed company for the first time since April last year.
“Apple was seen as a laggard in the AI race because it wasn’t spending to develop models, but now sentiment has changed,” said Toni Meadows, head of investment at BRI Wealth Management.
“Apple is less exposed to capex intensity and better positioned to monetize AI via services, ecosystem lock-in, and hardware upgrades. The re-rating reflects confidence in earnings durability rather than speculative AI upside.”
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The shift reflects growing investor confidence in Apple’s AI strategy after the company introduced a long-delayed overhaul of Siri last month. Apple hopes the upgraded assistant will narrow the gap with major technology rivals and newer AI companies.
Analysts also believe Apple holds a significant advantage because of the vast amount of personal data stored on iPhones, which could make Siri more capable. However, the company still faces the challenge of unlocking that value while maintaining its privacy standards.
The latest milestone also comes as Chief Executive Tim Cook prepares to hand over leadership to hardware chief John Ternus in September.
Nvidia became the first company to surpass a $5 trillion market valuation in October, driven by soaring demand for its AI chips. Despite losing the top position, the chipmaker remains a major beneficiary of AI spending, with its graphics processors continuing to power much of the generative AI industry.
“I don’t see any meaningful distinction. Nvidia likely to be a significant participant in whatever happens going forward,” said Benjamin Hall, vice president, alpha research at Segal Marco Advisors.
Investor interest has also expanded beyond the largest technology companies. Memory chipmakers, including Micron, crossed a $1 trillion valuation in May as demand for AI infrastructure grew, while South Korea’s SK Hynix has also attracted increased investor attention following its Nasdaq listing.
“The new entrants to the market could spread out the focus away from the pure Magnificent Seven names into a wider number of names,” Hall said.
The wider semiconductor sector has faced pressure in recent weeks as investors reassessed the sustainability of the AI trade. The Philadelphia Semiconductor Index has fallen nearly 19% from its record high, although it has still outperformed Nvidia so far this year.
