Friday marked Apple’s return to the throne of global market value, with its worth climbing to nearly $4.88 trillion. This surpassed Nvidia’s market cap, which fell to approximately $4.86 trillion as its shares slipped about 3.5% to $203.75.
This shift ended Nvidia’s 265-day reign as the highest-valued company, a position it had held since June 26, 2025, after overtaking Microsoft. Despite the recent dip in Nvidia’s share price, analysts remain optimistic, with an average price target around $314, highlighting the semiconductor giant as an attractive buy near $226.
Market and AI Sentiment Shift
The semiconductor sector has seen notable volatility; the PHLX Semiconductor Index dropped 2.2% on Friday and plunged 22% over the last month. Within this turbulent environment, Nvidia’s decline seems moderate.
Apple’s comeback signals a changing investor preference in the AI space. Early this year, companies heavily investing in AI infrastructure like Nvidia garnered more attention. Now, the focus is turning toward firms that can harness AI’s benefits without hefty capital expenses, and Apple fits this mold.
According to Toni Meadows of BRI Wealth Management, Apple’s initial lag in AI spending had cast doubt over its AI competitiveness. However, investor attitudes shifted as Apple demonstrated it could use AI effectively through its solid ecosystem, services segment, and device refresh cycles, all while avoiding significant capital expenditures.
Last month, Apple introduced major updates to its AI strategy, reinforcing confidence in its long-term positioning.
Nvidia’s 3.4% month-over-month stock decline contrasts with steeper drops in the semiconductor index, adding nuance to the sector’s turmoil.
