Apple regains world’s most valuable company crown as Nvidia slips on AI concerns

MUMBAI: Apple has once again bitten back. The iPhone maker has reclaimed its position as the world’s most valuable company after overtaking AI chip giant Nvidia, as investors shifted their focus from semiconductor stocks towards companies seen as better placed to monetise artificial intelligence over the long term.

Apple’s market capitalisation climbed to about $4.88 trillion to $4.9 trillion on Friday after its shares rose 0.4 per cent, while Nvidia’s valuation slipped to around $4.86 trillion to $4.8 trillion following a 3.5 to 3.7 per cent decline in its stock.

The milestone marks Apple’s return to the top spot for the first time since April 2025, after Nvidia had briefly become the world’s most valuable company during the AI-driven market rally.

The change in rankings reflects a broader shift in investor sentiment. After pouring money into companies that directly benefited from the artificial intelligence infrastructure boom, investors are increasingly backing businesses with diversified revenue streams and stronger long-term consumer ecosystems.

Apple has been one of the biggest beneficiaries of this rotation. Its shares have surged 21 per cent since touching a low in June and are now 23 per cent higher for the year, making it the best-performing member of the so-called “Magnificent Seven” technology stocks.

By comparison, the Nasdaq 100 Index has gained 12 per cent over the same period, while the S&P 500 Index has risen 8.6 per cent.

Apple’s rally has also been supported by regulatory approval to launch Apple Intelligence in China, opening a significant new market for its artificial intelligence features. The company has additionally received a boost from HSBC, which upgraded the stock to a “buy” rating from “hold”, citing improving growth prospects.

The company is also stepping up its AI ambitions. Last month, Apple unveiled a long-awaited upgrade to Siri, aiming to narrow the gap with rivals in generative AI. Analysts believe Apple’s vast ecosystem of devices and access to user data, while maintaining its privacy-first approach, could provide a competitive advantage as AI becomes more deeply integrated into consumer technology.

Leadership changes are also on the horizon, with chief executive Tim Cook expected to hand over the reins to hardware chief John Ternus in September.

Nvidia’s decline, meanwhile, was triggered by fresh concerns that the AI infrastructure spending boom may be approaching a plateau.

Investor sentiment weakened after reports that a new artificial intelligence model developed by Chinese startup Moonshot AI rivals leading models from OpenAI and Anthropic, both of which rely heavily on Nvidia’s graphics processors. The development fuelled concerns that demand for AI computing hardware may not continue growing at the breakneck pace seen over the past two years.

Despite Friday’s decline, Nvidia remains a dominant force in the AI ecosystem, with its GPUs continuing to power a large share of the world’s generative AI infrastructure.

Investor interest is also broadening beyond the traditional technology heavyweights. Memory chipmaker Micron crossed a $1 trillion market valuation earlier this year, while South Korean semiconductor manufacturer SK Hynix recently listed on Nasdaq, highlighting growing investor appetite for a wider range of AI-related companies.

For now, though, Apple has reclaimed the corporate crown, underscoring that the next phase of the AI race may be won not only by those building the chips, but also by those best positioned to turn the technology into products and services used by billions worldwide.