On Monday, Apple surpassed Nvidia to become the most valuable company globally, closing with a market capitalization of $4.95 trillion compared to Nvidia's $4.77 trillion after a 5% drop in Nvidia's shares. This marks the first time since April 2025 that Apple has held this title. Nvidia, which had been the leader since June 2025, briefly reached a $5 trillion valuation in October.
Year-to-date, Nvidia's stock has only increased by 4%, while Apple's shares have risen by 24%. The shift in investor sentiment appears to be influenced by Apple's cautious approach to capital expenditures for AI, opting to rent capacity rather than invest heavily in infrastructure.
As the market shifts focus from AI graphics processing units to memory chips and data center infrastructure, companies like Micron Technology and SK Hynix are gaining attention.
Apple's upcoming fiscal third-quarter earnings report on Thursday is expected to shed light on the financial impacts of the AI-driven global memory chip shortage, which has already led to price increases for its Mac and iPad products