Apple (NASDAQ: AAPL) is within striking distance of overthrowing Nvidia (NASDAQ: NVDA) as the world’s most valuable publicly traded company.
Apple’s market cap has climbed to $5.08 trillion, sitting less than 1% below Nvidia’s $5.12 trillion valuation, putting the iPhone maker on the cusp of seizing the top spot.
Nvidia has held the crown as the world’s most valuable company for more than two years, buoyed by insatiable demand for its AI chips.
Investors have recently begun questioning the sustainability of the broader AI trade, placing Nvidia’s previously bulletproof stock under meaningful pressure.
Nvidia shares have fallen 7.3% over the past month, while Apple shares have gained 2.5% over the same period, narrowing the market cap gap considerably.
Apple is increasingly viewed by investors as a more defensive play given its hardware-focused business model, offering relative shelter from AI-driven market volatility.
Thursday proved to be a brutal session for large-cap technology stocks, with the Nasdaq Composite falling nearly 2.6% in its worst single-day decline since June.
Meta (NASDAQ: META) added to the sector’s pain after posting negative free cash flow for the first time since 2012 in its third-quarter results, driven by aggressive AI spending.
Meta also announced it would issue a new tranche of stock to help fund its continued AI infrastructure buildout, rattling investors already nervous about AI expenditure across the industry.
Tough reviews of Apple’s new foldable Duo smartphone have done little to dampen enthusiasm among bulls, who see a massive upgrade cycle ahead for the company.
Yorkville Ives partner Dan Ives said in a note on Apple that “with roughly 375 million iPhones that have not upgraded in over 4 years, we believe the pool of buyers waiting for a reason to upgrade is deep enough to keep Duo demand high well into 2027.”
The combination of a resilient Apple share price, a softening Nvidia valuation, and a broader rotation away from AI-pure-play stocks has created a rare window for Apple to reclaim the top position in global market cap rankings.
