Apple has overtaken Nvidia to become the world’s most valuable listed company, marking a significant shift in the way investors view the technology sector and the future of artificial intelligence. The change comes after Nvidia shares fell 3.5% on Friday, allowing Apple to edge ahead in market value.
News agency Reuters reported that Apple’s valuation was at $4.88 trillion, while Nvidia was valued at about $4.86 trillion.
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The development signals that investors are no longer focused solely on companies building the infrastructure behind AI. Attention is also increasingly turning to businesses seen to be better positioned to generate long-term revenue from AI-powered products and services.
Apple back on top
The latest ranking puts Apple at the top for the first time since April last year. Nvidia had dominated the list for almost a year after becoming the first company to surpass a market valuation of $5 trillion in October due to surging demand for its AI chips.
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Although the latest change shuffles the rankings, it does not necessarily indicate a permanent change. Nvidia remains one of the biggest beneficiaries of AI spending, with its graphics processors powering much of the generic AI boom.
Why has investor sentiment changed?
Analysts reportedly say Apple’s rise reflects changing expectations around artificial intelligence rather than a sudden change in its business.
“Apple was seen as lagging in the AI race because it was not spending to develop models, but now the perception has changed,” news agency Reuters quoted Tony Meadows, head of investment at BRI Wealth Management.
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The shift shows that investors are placing more value on companies that can turn AI into sustainable earnings, rather than relying solely on heavy infrastructure spending.
Apple’s AI push draws attention
Apple has long faced criticism for moving slower than rivals in the AI race. However, the company has recently stepped up efforts to strengthen its position.
Last month, it introduced a long-awaited overhaul of Siri, betting that the improved assistant would help close the gap with larger technology rivals and AI-focused startups.
Nvidia remains a major AI player
Despite slipping to second place, Nvidia maintains a central role in the AI industry. Its chips remain the backbone of many generative AI systems, and analysts believe the company could return to the top if investor sentiment turns again.
Meanwhile, Apple faces its own challenges after raising product prices to offset higher costs, a move that could hit consumer demand.
(With inputs from Reuters)