Apple vs. Nvidia Is No Longer Just a Race for Market Value

For nearly a year, Nvidia has worn the crown as the world's most valuable company. But today, Apple took it back.

Apple's market valuation reached about $4.88 trillion on Friday, edging past Nvidia at roughly $4.86 trillion. At one point, just $20 billion separated the two, a surprisingly small gap when you're talking about companies worth nearly $5 trillion.

The numbers could easily flip again. But the fact that Apple has caught Nvidia at might tell us more about AI, strategy, and whose bet investors believe could pay off next.

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TechloyOgbonda Chivumnovu

Why are Apple and Nvidia trading places?

This year, Apple and Nvidia have taken very different paths in the stock market. Apple has beaten expectations, rising 22% this year and leading the Magnificent Seven, while Nvidia has gained just 7%.

"Apple was seen as a laggard in the AI race because it wasn't spending to develop models, but now sentiment has changed," Toni Meadows, head of investment at BRI Wealth Management, told Reuters.

Apple is benefiting from a different AI bet. The company was criticised for appearing to fall behind while rivals spent billions building models and data centres. Now, investors are looking at Apple's ability to monetise AI through its services, hardware upgrades, and enormous ecosystem of devices.

“Apple is less exposed to capex intensity and better positioned to monetize AI via services, ecosystem lock-in, and hardware upgrades,” Meadows added.