Apple’s market cap stood at around $4.88 trillion on Friday, narrowly edging out Nvidia at $4.86 trillion as investors reassess where the next phase of the AI boom will create value
Apple has overtaken Nvidia to become the world’s most valuable company, reclaiming the top spot for the first time since April 2025 as investors begin to look beyond the biggest winners of the artificial intelligence (AI) boom.
Apple’s market capitalisation stood at around $4.88 trillion on Friday as its shares remained largely steady. Nvidia, meanwhile, slipped to around $4.86 trillion after its shares fell 3.5%.
The change at the top marks another major shift in the global technology landscape. Nvidia had held the title of the world’s most valuable company since June 2025, riding an extraordinary rally fuelled by demand for its chips that power generative AI models and data centres.
Apple, on the other hand, was for long seen as being behind its Big Tech rivals in the AI race. But investor sentiment appears to be changing.
Why Apple Has Overtaken Nvidia
Apple’s return to the top comes as investors reassess where the next phase of the AI boom could create value. While Nvidia has been one of the biggest direct beneficiaries of massive spending on AI infrastructure, Apple’s appeal lies in a different business model. Instead of spending heavily on building data centres and developing large AI models, Apple could potentially make money from AI through its huge ecosystem of devices and services.
“Apple was seen as a laggard in the AI race because it wasn’t spending to develop models, but now sentiment has changed,” Toni Meadows, head of investment at BRI Wealth Management, told Reuters.
“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,” Meadows added.
Apple’s AI Bet Begins to Take Shape
Apple’s rise also comes as the company steps up efforts to establish itself as a serious player in AI. Last month, Apple rolled out its long-delayed overhaul of Siri, betting that a more capable version of its voice assistant could help it close the gap with Big Tech rivals and AI startups.
Some analysts believe Apple’s biggest AI advantage could already be sitting in the pockets of millions of users: the iPhone. The vast amount of personal information stored on individual devices could potentially allow Siri to provide more personalised and useful answers. However, Apple also faces the challenge of using this data while maintaining the privacy protections that have become central to its brand.
Apple Shares Outperform Magnificent Seven
Apple’s stock performance has also stood out among the so-called Magnificent Seven technology companies this year. The company’s rise contrasts with growing volatility in semiconductor stocks, where investors have started questioning whether the massive AI-driven rally can continue at the same pace.
The Philadelphia Semiconductor Index has fallen almost 19% from its record high amid a sharp July sell-off as investors reassessed the sustainability of the AI trade. The pullback has also weighed on Nvidia, helping Apple move narrowly ahead in the race to become the world’s most valuable company.
Nvidia’s AI Story Is Far from Over
Apple taking the top spot does not necessarily mean Nvidia’s dominance is over. Nvidia remains at the heart of the global AI infrastructure boom. Its graphics processing units, or GPUs, are widely used to train and run generative AI models, making the company a major beneficiary of spending by technology giants racing to expand their AI capabilities.
Benjamin Hall, vice president of alpha research at Segal Marco Advisors, told Reuters that he did not see a meaningful distinction between Apple and Nvidia based purely on which company currently holds the top position.
“Nvidia likely to be a significant participant in whatever happens going forward,” he said.
The AI Trade Is Getting Bigger
Another important change taking place in global markets is that investor interest in AI is spreading beyond Nvidia. Memory chipmakers have emerged as major beneficiaries as demand for high-bandwidth memory and other components required for AI data centres grows.
“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 told Reuters.
