Apple overtook Nvidia on Friday to become the world’s most valuable company, after a slide in Nvidia’s shares pushed the chipmaker behind the iPhone maker in market value.

Apple was valued at about $4.88 trillion, while Nvidia stood near $4.86 trillion after its shares fell 3.5%.

Apple had surpassed Nvidia with a valuation of $4.88 trillion, marking a fresh reshuffle at the top of the technology sector.

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AI sentiment turns the tables

The change reflects a broader shift in investor sentiment around artificial intelligence.

For much of the past year, Nvidia had been the clear market leader, powered by soaring demand for its AI chips and, at one point, becoming the first company to cross a $5 trillion valuation in October.

Apple, by contrast, had often been described as trailing in the AI race because it had not spent aggressively to build models.

As Toni Meadows, head of investment at BRI Wealth Management, said, “Apple was seen as a laggard in the AI race because it wasn’t spending to develop models, but now sentiment has changed.”

Apple’s quiet AI wager comes into focus

That reassessment appears to be tied less to a sudden change in Apple’s business and more to how investors are pricing the future of AI.

Apple is being viewed as better positioned to monetize AI through services, ecosystem lock-in, and hardware upgrades, rather than through the heavy capital spending required to build AI infrastructure.

The company also rolled out a long-delayed overhaul of Siri last month, betting that the updated assistant can help it narrow the gap with rivals in the fast-moving AI race.

Some analysts see Apple as sitting on an AI advantage in the personal data stored on iPhones, though that data remains protected by privacy controls.

The crown may yet change hands again

Even so, the change in rankings does not necessarily mark a lasting shift.

Nvidia remains a major beneficiary of AI-related spending, with its graphics processors powering much of the generative AI boom, and analysts believe it could regain the top spot if sentiment turns again.

The chip rally has also broadened beyond the two companies, with gains in memory-chip makers such as Micron and South Korea’s SK Hynix.

At the same time, the semiconductor index has faced turbulence this month, falling nearly 19% from its highs as investors questioned how long the AI trade can keep running at the same pace.

Apple, meanwhile, faces its own pressure after raising prices to offset higher costs, a move that could weigh on demand.

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FAQs

Q1: Why did Apple overtake Nvidia as the world’s most valuable company?

Apple regained the top spot after Nvidia’s share price declined, reducing the chipmaker’s market value below Apple’s.

Q2: Is Nvidia still a major player in the AI industry?

Yes, Nvidia remains a leading supplier of AI chips and continues to play a central role in the global artificial intelligence market.