Apple Inc. has reclaimed the title of the world's most valuable company, overtaking Nvidia Corp. for the first time since April 2025, as investors broaden their artificial intelligence bets beyond chipmakers to companies with stronger AI monetisation prospects.
Apple's market capitalisation stood at about $4.88 trillion on Friday, edging past Nvidia's $4.86 trillion after the AI chipmaker's shares fell 3.5%. Nvidia had held the top spot since June 2025, powered by soaring demand for its graphics processing units used to train and run generative AI models.
Apple, which had long been viewed as trailing its Big Tech peers in the AI race, is now benefiting from growing confidence that it can generate AI-driven growth through its ecosystem rather than by competing in the race to build large language models.
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"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 said.
The renewed optimism follows Apple's push into artificial intelligence, including the rollout of its long-delayed Siri overhaul last month. Analysts say the company's installed base of iPhones and other devices gives it a unique opportunity to integrate AI into everyday consumer experiences while expanding its high-margin services business.
Investors also see Apple's privacy-first approach as a potential differentiator as it seeks to deliver personalised AI features without compromising user data.
The company's gains come amid increasing volatility in semiconductor stocks. The Philadelphia Semiconductor Index has fallen nearly 19% from its record high during a July sell-off, reflecting investor concerns over the sustainability of the AI-fuelled rally.
That pullback has weighed on Nvidia, allowing Apple to narrowly reclaim the top spot.
Despite losing its crown, Nvidia remains at the centre of the AI infrastructure boom and continues to benefit from massive spending by technology companies building AI data centres.
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Benjamin Hall, vice president of alpha research at Segal Marco Advisors, said the change in rankings does little to alter Nvidia's long-term prospects. "Nvidia likely to be a significant participant in whatever happens going forward," Hall told Reuters.
Market participants also note that the valuation gap between the two companies remains extremely narrow, meaning leadership could change again if Nvidia's shares recover.
Meanwhile, investor interest in AI is broadening beyond the so-called Magnificent Seven. Memory chipmakers have emerged as key beneficiaries of rising demand for AI infrastructure, with companies such as Micron and SK Hynix attracting fresh investor interest.
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