Investor sentiment around artificial intelligence is shifting, helping Apple reclaim the position of the world’s most valuable company by market value. On Friday, Apple overtook Nvidia, marking its first return to the top spot since April last year.
Apple’s market valuation stood at $4.88 trillion, while Nvidia’s value slipped to around $4.86 trillion after its shares declined 3.5%.
The change reflects a broader shift in investor focus beyond companies directly linked to AI infrastructure. According to Toni Meadows, Head of Investment at BRI Wealth Management, “Apple was seen as a laggard in the AI race because it wasn’t spending to develop models, but now sentiment has changed.” Meadows added, “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.”
The milestone also highlights Apple’s growing AI strategy. Last month, the company introduced a long-awaited upgrade to Siri, aiming to narrow the gap with major technology rivals and AI-focused startups. Analysts also believe Apple holds a significant AI advantage through the personal data stored on iPhones, although unlocking its value while maintaining user privacy remains a challenge.
The achievement comes as CEO Tim Cook prepares to hand over leadership to hardware executive John Ternus in September.
Nvidia, which became the first company to cross a $5 trillion market valuation in October, continues to benefit from strong AI spending, with its graphics processors powering much of the generative AI market. Analysts say the chipmaker could regain the top position if investor sentiment changes.
The AI investment trend has also boosted memory chip companies. Micron crossed a $1 trillion market value in May, while SK Hynix recently listed on Nasdaq, expanding investor interest beyond the traditional technology leaders.
Despite a recent decline of nearly 19% from its all-time high in July, the Philadelphia SE Semiconductor Index has still outperformed Nvidia so far this year.
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