Apple has overtaken Nvidia to become the highest-valued company globally, marking its return to the top spot for the first time since April 2025. The iPhone maker’s market capitalization reached $4.88 trillion as its shares held steady, while Nvidia’s valuation slipped by approximately 3.5% to $4.86 trillion.
Investors have rewarded Apple’s measured approach to artificial intelligence (AI), favoring its lower capital expenditure compared to peers heavily investing in AI infrastructure. Apple’s shares have surged near 22% this year, outperforming rivals in the so-called Magnificent 7, which also includes Alphabet, Amazon, Meta, Microsoft, Nvidia, and Tesla.
Analysts highlight Apple’s advantage in leveraging its vast user data from iPhones to enhance its AI assistant, Siri, potentially delivering better, more personalized interactions. This strategic use of existing assets positions Apple as a more efficient player in the AI space, reducing risk related to costly AI development projects. Meanwhile, Nvidia, a key supplier of AI chips, remains a major beneficiary of the AI surge but faces challenges as investors rethink heavy capital outlays.
Market watchers note that Apple’s capital spending model, combined with cautious AI investment, aligns with growing investor concerns about overspending on AI computing capacity prevalent among other tech giants. Apple’s shares notably outpaced the Nasdaq 100 Index, which increased by 12%, and the broader S&P 500 Index with an 8.6% rise.
Additionally, Apple is preparing to expand its AI capabilities into the Chinese market, having gained regulatory approval to launch its Apple Intelligence platform. This move highlights Apple’s gradual but steady international push in AI services, distinguishing it from competitors who aggressively scale up AI operations.