Apple has reclaimed its position as the world’s most valuable company after its market capitalisation climbed to approximately $4.88 trillion, edging past Nvidia, whose valuation slipped to $4.86 trillion.
The milestone follows a 3.5 per cent decline in Nvidia’s share price on Friday, ending the chipmaker’s nearly year-long reign at the top, according to Reuters.
Nvidia had dominated global market rankings since April last year, driven by soaring demand for artificial intelligence (AI) chips and infrastructure. However, investors are now increasingly optimistic about Apple’s long-term AI strategy and its ability to monetise the technology through its vast ecosystem.
Analysts say the shift reflects changing investor sentiment toward Apple’s role in the AI race.
For much of the past year, Apple was viewed as trailing rivals because it invested less aggressively in developing large AI models. That perception is now changing as investors focus on the company’s strengths in hardware, services and its tightly integrated ecosystem.
“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.
According to Meadows, Apple is less exposed to the heavy capital expenditure required to build AI infrastructure and is better positioned to generate revenue from AI through its services, device upgrades and customer loyalty.
Analysts also believe Apple’s greatest AI advantage may lie in the vast amount of personal data securely stored on millions of iPhones worldwide. If leveraged while maintaining the company’s strong privacy standards, that data could significantly enhance Siri and other AI-powered services.
Apple’s return to the top comes as it accelerates efforts to strengthen its AI capabilities.
Last month, the company unveiled a long-awaited overhaul of its Siri voice assistant, aiming to narrow the gap with competitors that have moved quickly in deploying generative AI technologies.
The development is especially significant as CEO Tim Cook prepares to hand over leadership to hardware chief John Ternus in September. Reclaiming the title of the world’s most valuable company could bolster Cook’s legacy after years of steering Apple through major technological transitions.
Apple’s resurgence is also supported by the strength of its core business.
Earlier this year, Counterpoint Research reported that Apple became the world’s largest smartphone vendor in 2025 as global smartphone shipments grew by two per cent year-on-year, marking the industry’s second consecutive year of expansion.
The iPhone maker overtook Samsung, driven by strong demand for its premium devices and robust growth in emerging markets. Apple also recorded the fastest growth among the world’s five largest smartphone brands, reinforcing its leadership in the global smartphone market.
With renewed investor confidence in its AI ambitions and continued strength in its hardware business, Apple has once again established itself as Wall Street’s most valuable company, while Nvidia’s dominance gives way to a fresh chapter in the race for AI leadership.
