Apple has reclaimed the title of the world's most valuable company, surpassing chipmaker Nvidia on Monday after the latter held the top spot for more than two years. The iPhone maker's market capitalization reached $4.99 trillion by midday Tuesday, briefly touching the $5 trillion mark around noon.
Nvidia, which had dominated the market since June 2024 when it pioneered the AI chip boom, saw its valuation slip to roughly $4.78 trillion. The company's shares fell Monday morning alongside other semiconductor firms, as investors grew uneasy about the rising costs of artificial intelligence infrastructure and the competitive threat from Chinese rivals.
Apple's stock has climbed 25 percent since the start of the year, reflecting renewed investor confidence in its services revenue and steady iPhone demand. The company first reached a $3 trillion valuation and held the most-valuable title for much of the 2010s and early 2020s, but had lagged behind Nvidia during the AI frenzy.
Nvidia's ascent was meteoric: it became the first company to hit $4 trillion last July, and crossed $5 trillion just months later. However, after a blockbuster 2025, the chipmaker has seen more subdued gains in 2026, with its stock up only about 4.6 percent so far this year.
The shift highlights the volatility in the tech sector, where AI spending and geopolitical tensions are reshaping market leadership. While Apple has struggled to find its footing in the AI race, its diversified product ecosystem and massive cash reserves have helped it weather the storm.
Analysts say Nvidia's near-term outlook hinges on sustaining demand for its high-end chips amid a potential slowdown in AI investment. Meanwhile, Apple's focus on services and consumer loyalty continues to underpin its valuation. The market cap shuffle underscores how quickly fortunes can change in the tech industry, even for the largest players.
