Apple Surpasses Nvidia to Regain Title of World's Most Valuable Company

Apple reclaimed the world's most valuable company crown on Monday, ending Nvidia's six-month reign at the top. Shares of the iPhone maker edged up 1%, pushing its market capitalization to $4.95 trillion, while Nvidia shares dropped 5% to $4.77 trillion. Apple last held the title in April 2025, before Nvidia took over in June following a blistering run driven by AI chip demand.

The reversal comes as investor enthusiasm for AI chips has cooled somewhat. Nvidia briefly crossed the $5 trillion mark in October but has since lost ground. Meanwhile, Apple has been rewarded for its cautious approach to AI infrastructure spending - preferring to rent computing capacity rather than build its own data centers. So far in 2026, Apple shares have gained 24%, far outpacing Nvidia's 4% rise. The broader AI chip sector also declined Monday, with investors shifting focus to memory chip makers like Micron Technology, SK Hynix, and Sandisk, which are benefiting from the AI buildout in different ways.

All eyes are now on Apple's fiscal third-quarter earnings, due out Thursday. Analysts expect the company to disclose how a global memory chip shortage has impacted its bottom line. Apple raised prices on its Mac and iPad lines last June to offset rising component costs, a move that will be reflected in the upcoming report. The shortage, driven by surging demand for high-bandwidth memory used in AI systems, has squeezed supply chains across the tech industry. Investors will be watching to see if Apple can maintain its margins and whether its stock can hold onto its recent gains.

Source: CNBC