Apple has reclaimed the title of the world's most valuable publicly listed company, overtaking Nvidia after the chipmaker's shares declined on Friday in a development that reflects changing investor sentiment toward artificial intelligence.
Nvidia's stock fell 3.5%, allowing Apple to move ahead in terms of market capitalisation. According to Reuters, Apple ended with a valuation of $4.88 trillion, while Nvidia's market value stood at approximately $4.86 trillion.
The shift suggests investors are increasingly looking beyond companies that supply the infrastructure for artificial intelligence and are placing greater emphasis on businesses expected to generate sustained revenue from AI-enabled products and services.
The latest milestone marks Apple's return to the top spot for the first time since April last year. Nvidia had held the position for nearly a year after becoming the first company to surpass a $5 trillion market capitalisation in October, driven by soaring demand for its artificial intelligence chips.
Despite the change in rankings, analysts do not see it as a definitive turning point. Nvidia remains one of the biggest beneficiaries of global AI investment, with its graphics processing units continuing to power a large share of the generative AI ecosystem.
According to analysts, Apple's rise is more closely tied to evolving expectations surrounding its AI strategy than to any sudden transformation in its underlying business.
“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 was quoted as saying by news agency Reuters.
The latest market movement indicates that investors are assigning greater value to companies capable of translating artificial intelligence into durable earnings rather than those focused primarily on infrastructure spending.
Apple had previously faced criticism for lagging behind competitors in the AI race, but the company has recently accelerated efforts to strengthen its offerings in the sector.
Last month, it unveiled a major upgrade to Siri, with the revamped voice assistant expected to help narrow the gap with larger technology rivals and AI-focused startups.
Although Nvidia has slipped to second place, it continues to occupy a pivotal position in the AI industry. Its processors remain the foundation for many generative AI applications, and analysts believe the company could regain the top position if market sentiment shifts once again.
Apple, meanwhile, is also confronting challenges after increasing product prices to offset rising costs, a move that could weigh on consumer demand.
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