Apple Inc (AAPL) has reclaimed its position as the world's most valuable publicly traded company, overtaking Nvidia Corp (NVDA) after the chipmaker suffered a sharp share decline, according to a Bloomberg report.
Nvidia's stock dropped 3.7% on Friday, reducing its market capitalization to approximately $4.8 trillion. Apple, meanwhile, gained 0.4%, pushing its valuation to around $4.9 trillion — reclaiming the top spot for the first time since Nvidia overtook it in May 2025, Bloomberg reported.
Market Rotation from AI to Long-Term Growth
Investors are shifting away from companies that have benefited most from the artificial intelligence (AI) boom and are rotating into firms seen as better positioned for sustainable long-term growth, according to Bloomberg. Apple has emerged as one of the biggest beneficiaries of this trend.
Apple's shares have surged 21% since hitting a low in June and are now up 23% for the year, making it the best-performing stock among the "Magnificent Seven" technology giants. During the same period, the Nasdaq 100 Index has gained 12%, while the S&P 500 Index has risen 8.6%.
| Metric | Apple | Nvidia |
|---|---|---|
| Market Cap (Friday close) | ~$4.9 trillion | ~$4.8 trillion |
| Daily Share Change | +0.4% | -3.7% |
| YTD Performance | +23% | Not specified |
| 52-Week High/Low context | Surged 21% from June low | Fell after Moonshot news |
Apple Intelligence Approval Boosts Sentiment
Apple's recent rally has also been supported by long-awaited government approval to launch Apple Intelligence in China, a move that is expected to strengthen the company's growth prospects, Bloomberg reported. The approval removes a key regulatory hurdle and opens a major market for Apple's AI-powered features.
Nvidia Under Pressure from Chinese AI Rival
Nvidia's shares came under pressure after reports that a new AI model developed by Chinese startup Moonshot rivals leading models from OpenAI and Anthropic — both of which rely on Nvidia's chips. The development has raised fresh concerns among investors that the massive spending on AI infrastructure could be nearing its peak, according to Bloomberg.
HSBC Upgrades Apple to 'Buy'
Adding to Apple's momentum, HSBC upgraded the stock to "buy" from "hold", citing the company's improving outlook. Analyst Nicolas Cote-Colisson wrote:
Apple "is now at an operational turning point." Not only can the company stay away from the "(too) high capex debate," but "it is also well placed to leverage its 2.5bn installed device base with its forthcoming revamped Apple Intelligence."
The upgrade underscores the view that Apple can generate value from its massive user base without the heavy capital expenditure required by AI infrastructure builders like Nvidia.
Next Milestone
Investors will watch for further details on Apple Intelligence's China rollout and Nvidia's next earnings report for signs of AI demand sustainability. Apple's annual product launch cycle, expected in September, could also influence its market cap trajectory.
Sources:
