Apple (AAPL) Stock Overtakes Nvidia to Become World’s Most Valuable Company

TLDR

• Apple surpassed Nvidia on Friday to become the world’s most valuable company, valued at ~$4.88 trillion vs Nvidia’s ~$4.86 trillion
• Nvidia stock fell ~3.5% to around $203.75, ending a 265-trading-day streak as the top company by market cap
• The PHLX Semiconductor Index dropped 22% over the past month; Nvidia fell 3.4% in the same period
• Apple has outperformed the broader “Magnificent 7” this year, boosted by shifting sentiment around its AI strategy
• China’s Moonshot AI claimed its Kimi K3 model can beat some U.S. AI systems, though it didn’t reveal what hardware was used

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Apple dethroned Nvidia on Friday to become the world’s most valuable company for the first time since April 2025. Apple’s market cap hit roughly $4.88 trillion, edging past Nvidia’s $4.86 trillion after the chipmaker’s stock slid around 3.5% to $203.75 in early trading.

Apple Inc., AAPL

The move ends Nvidia’s run as the top company by market cap — a streak that had lasted 265 trading days, dating back to June 26, 2025, when it overtook Microsoft.

Wall Street analysts still have an average price target of around $314 on Nvidia stock, well above where it trades today. The stock had been a recent Barron’s pick at around $226.

JUST IN: Apple overtakes Nvidia as world’s most valuable company pic.twitter.com/oOLMdOZXkX

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Chip stocks broadly have been taking a beating. The PHLX Semiconductor Index fell 2.2% on Friday alone and is down 22% over the past month. By that measure, Nvidia’s 3.4% decline over the same stretch looks relatively contained.

Apple’s rise reflects a shift in how investors are thinking about AI. For a long time, the market rewarded companies spending heavily on AI infrastructure — Nvidia being the clearest winner. Now some investors are looking at companies that could benefit from AI without the same exposure to capital spending.

Why Apple’s Narrative Is Changing

“Apple was seen as a laggard in the AI race because it wasn’t spending to develop models, but now sentiment has changed,” said Toni Meadows, head of investment at BRI Wealth Management. “Apple is less exposed to capex intensity and better positioned to monetize AI via services, ecosystem lock-in, and hardware upgrades.”

Last month, Apple rolled out a long-delayed overhaul of Siri, positioning the upgraded assistant as its answer to rivals in the AI space. Some analysts argue Apple holds an untapped advantage in the form of personal data sitting on hundreds of millions of iPhones — data that could make Siri far more capable, if Apple can find a way to use it while maintaining its privacy commitments.

Apple’s CEO Tim Cook is also preparing to hand over the reins to hardware veteran John Ternus in September, adding a leadership transition to the mix.

What’s Next for Nvidia

Nvidia isn’t out of the picture. Its chips still power the vast majority of generative AI infrastructure, and it could reclaim the top spot if AI spending sentiment improves.

The upcoming earnings season will be key. Big Tech companies need to signal they’ll keep or grow their AI hardware budgets — and ideally confirm Nvidia’s next-generation Vera Rubin chips are shipping in volume.

One variable: China’s Moonshot AI said Friday that its Kimi K3 model can outperform some U.S. AI systems. It did not say what hardware the model was trained on. If it turns out non-Nvidia chips were used — potentially Huawei — that could complicate the narrative around Nvidia’s dominance in AI training.

Meanwhile, memory chipmakers like Micron have also gained ground this year, with Micron crossing $1 trillion in market value in May. South Korea’s SK Hynix listed on the Nasdaq earlier this month, broadening the field of AI-linked semiconductor plays.

As of Friday, Apple sits at the top — at least for now.