Apple overtakes Nvidia as world’s most valuable company

Apple overtook Nvidia on Friday to become the world’s most valuable company, reclaiming the top position for the first time since April 2025 as investors reassessed the outlook for artificial intelligence.

Apple was valued at about $4.88 trillion as its shares traded largely unchanged, while a 3.5% decline in Nvidia’s stock reduced the chipmaker’s market capitalisation to around $4.86 trillion.

Nvidia had held the top position since June 2025 after becoming the first company to cross a $5 trillion valuation in October.

Apple’s return to the lead reflects growing investor interest in companies that could generate AI-related revenue without matching the heavy capital spending required by chipmakers and model developers.

Toni Meadows, Head of Investment at BRI Wealth Management, said sentiment towards Apple had improved after the company was previously viewed as trailing competitors in AI.

Apple is considered less exposed to intensive capital expenditure and could benefit from AI through its services, hardware upgrades and established ecosystem, supporting confidence in the durability of its earnings.

The company’s shares have outperformed the other members of the Magnificent Seven so far this year.

Apple last month introduced a delayed overhaul of Siri as it seeks to narrow the gap with large technology companies and AI startups.

Some analysts believe the personal data stored on iPhones could help Apple make Siri more useful and capable. However, the company must balance the commercial value of that data with the privacy protections built into its operating systems.

The shift comes as Chief Executive Officer Tim Cook prepares to hand over the role to hardware executive John Ternus in September.

Despite losing the top position, Nvidia remains one of the main beneficiaries of global spending on AI infrastructure, with its graphics processors powering much of the growth in generative AI.

Benjamin Hall, Vice President for Alpha Research at Segal Marco Advisors, said Nvidia was likely to remain a major participant in the continued development of AI and could regain the top position if market sentiment changes.

Apple also faces risks after raising prices to offset higher costs, a move that could weaken consumer demand.

Investor interest in AI has meanwhile expanded beyond Nvidia and the largest US technology companies.

Micron crossed $1 trillion in market value in May as investors focused on the role of memory chips in AI infrastructure, while South Korea’s SK Hynix listed on the Nasdaq earlier this month.

The semiconductor rally, however, weakened in July as investors questioned the sustainability of AI-related valuations. The Philadelphia SE Semiconductor index has fallen nearly 19% from its record high, although it has still outperformed Nvidia so far this year.