Apple overtakes NVIDIA to become world's most valuable company
What's the story
Apple has reclaimed its position as the world's most valuable company, surpassing NVIDIA. The change comes amid concerns over rising costs of artificial intelligence (AI) investments affecting tech stocks. At Friday's market close, Apple's market cap was $5.03 trillion, slightly ahead of NVIDIA's $4.93 trillion. Despite this shift, both companies saw their shares decline on the day, Apple by 1.2% and NVIDIA by 4.2%.
Market reaction
AI investment costs impact tech stocks
The shift in market value comes as investors reevaluate the financial impact of tech companies' heavy investments in AI.
Major companies like Amazon, Intel, Alphabet, and Meta Platforms have come under pressure after their latest earnings reports.
This has fueled uncertainty about the profitability of these AI-related expenses.
Apple's relatively restrained approach to capital-intensive AI infrastructure spending has set it apart from its competitors during this period of market volatility.
Financial outlook
Apple's financial resilience shines through
Apple's shares have surged 27% in 2026, outperforming NVIDIA's growth.
This makes Apple the top performer among the "Magnificent Seven" tech companies.
The company is also projected to see a 38% increase in its free cash flow, reaching $142 billion for fiscal 2026 (ending September 30).
On the other hand, Alphabet and Amazon have witnessed their free cash flow turn negative due to heavy spending, increasing their reliance on debt markets for funding amid rising borrowing costs.
Market downturn
Broader market impact and infrastructure companies' struggles
The pressure from AI spending concerns has not been limited to tech giants. The Nasdaq 100 index fell 6.7% in October, its biggest monthly decline since March 2025.
AI infrastructure companies have also suffered losses, with shares of data center operators CoreWeave and Nebius Group falling over 30% this month alone.
Intel's stock has plummeted by more than 45%, heading for its worst monthly performance in over four decades of Bloomberg data tracking.