Cupertino: Apple Inc. has reclaimed the title of the world’s most valuable listed company after overtaking Nvidia Corp., whose shares fell sharply on Friday amid growing investor concerns over the artificial intelligence (AI) sector.
Apple’s market capitalisation rose to approximately $4.9 trillion, edging past Nvidia’s $4.8 trillion, after the iPhone maker’s shares gained 0.4 per cent while Nvidia’s stock dropped 3.7 per cent.
The change in rankings reflects a broader shift in investor sentiment, with markets rotating away from some of the biggest AI beneficiaries towards companies seen as offering more balanced long-term growth prospects.
Apple overtakes Nvidia
Apple has held the top position among global listed companies several times over the past decade, but Nvidia had occupied the number one spot since May 2025, driven by the explosive demand for AI chips.
Friday’s market movement reversed that trend.
At the close of trading:
- Apple market capitalisation: Approximately $4.9 trillion
- Nvidia market capitalisation: Approximately $4.8 trillion
The shift came as Apple’s stock rose modestly while Nvidia experienced a sharp decline.
Why did Nvidia’s shares fall?
Nvidia shares declined 3.7 per cent after reports suggested that a new AI model developed by Chinese startup Moonshot could compete with leading models from OpenAI and Anthropic.
The development sparked concerns among investors that demand for expensive AI infrastructure and specialised chips could eventually moderate as competition in the AI model market intensifies.
Investors also appeared concerned that the extraordinary rally in AI-related stocks may have become stretched following months of strong gains.
Although Nvidia remains the dominant supplier of AI chips globally, the emergence of increasingly capable AI models from multiple developers has prompted markets to reassess growth expectations.
Apple benefits from sector rotation
While AI-focused companies witnessed selling pressure, Apple benefited from a broader rotation into technology stocks considered less exposed to heavy AI infrastructure spending.
The company’s shares have risen 21 per cent since hitting a low in June.
For 2026 so far, Apple has gained 23 per cent, making it the best-performing stock among the Magnificent Seven technology companies.
During the same period:
- Nasdaq 100 Index: Up 12 per cent
- S&P 500 Index: Up 8.6 per cent
The strong performance reflects improving investor confidence in Apple’s growth prospects.
Apple Intelligence receives China boost
One of the factors supporting Apple’s recent rally is regulatory progress in China.
The company recently secured long-awaited government approval to introduce Apple Intelligence features in the Chinese market.
Analysts believe the rollout could strengthen Apple’s ecosystem and encourage device upgrades among its extensive global customer base.
Apple currently has an installed base of around 2.5 billion active devices, providing a significant platform for expanding AI-powered services.
HSBC upgrades Apple
Investor sentiment also received support after HSBC upgraded Apple’s stock from “Hold” to “Buy.”
HSBC analyst Nicolas Cote-Colisson said Apple appears well positioned as the market reassesses the sustainability of heavy AI spending.
According to the analyst, Apple is entering an important operational phase, with its large installed device base expected to benefit from future enhancements to Apple Intelligence.
The brokerage also suggested Apple is less exposed to concerns surrounding rising capital expenditure on AI infrastructure than several of its technology peers.
AI spending debate continues
The latest market movements highlight an evolving debate among investors regarding AI-related investments.
Over the past two years, companies such as Nvidia have witnessed extraordinary gains due to soaring demand for AI chips powering large language models and cloud computing infrastructure.
However, some investors are now questioning whether spending on AI infrastructure is approaching a cyclical peak.
At the same time, companies with large consumer ecosystems, such as Apple, are increasingly being viewed as potential beneficiaries of AI through software integration rather than hardware investment alone.
Conclusion
Apple’s return as the world’s most valuable company reflects changing investor sentiment within the technology sector. While Nvidia continues to dominate the AI chip market, concerns over AI infrastructure spending and increased competition weighed on its shares. Meanwhile, Apple’s improving growth outlook, expanding AI strategy and regulatory progress in China helped lift its valuation to nearly $4.9 trillion, allowing it to reclaim the top spot in global market capitalisation.