Apple overtook Nvidia on Friday to become the world’s most valuable company, ending nearly a year at the top for the chipmaker as investors reassessed the AI trade.
Apple closed with a market capitalization of $4.88 trillion, while Nvidia’s valuation slipped to approximately $4.86 trillion on the back of a 3.5% drop in its share price
Apple last held the title in April 2025. The shift comes as Wall Street has grown less certain about the pace of AI infrastructure spending. The Philadelphia SE Semiconductor index has fallen almost 19% from its all-time highs, and chip stocks are heading for their worst weekly performance in over a year. “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 milestone arrives at a pivotal moment for Apple.
CEO Tim Cook is preparing to hand the role to hardware engineering chief John Ternus in September, as announced by the company in April. Apple has also been working to close the gap with rivals on AI, rolling out a rebuilt version of Siri last month powered by Google’s Gemini technology. The gap between the two companies had already narrowed to roughly $190 billion on Wednesday, with Apple stock climbing after reports of an expanded iPhone lineup.