Apple Reclaims Title as World's Most Valuable Company Over Nvidia

Apple's market capitalization reached $3.57 trillion on Thursday, edging past Nvidia's $3.53 trillion, according to data from LSEG. The shift reflects a broader investor preference for companies that generate revenue from consumer AI applications rather than those supplying the underlying hardware.

The company's stock has risen about 20% since early August, fueled by expectations that the upcoming iPhone 16 lineup, which integrates Apple Intelligence features, will drive a significant upgrade cycle. Services revenue, which includes the App Store and Apple Music, grew 14% year-over-year in the most recent quarter, contributing to a 6% increase in total revenue to $95.4 billion.

Nvidia had briefly held the top spot in June after a stock surge driven by demand for its AI chips, which power data centers and large language models. However, its shares have since pulled back as some investors question the sustainability of the AI infrastructure boom and look for companies with more diverse revenue streams.

Analysts note that Apple's advantage lies in its ability to monetize AI through subscriptions and device sales, rather than relying solely on hardware components. The company's installed base of over 2.2 billion active devices provides a large market for its AI-powered services.

The leadership change is symbolic of a broader market rotation. While Nvidia remains a key player in the AI supply chain, Apple's focus on user-facing AI features and its ecosystem strength have made it a more attractive long-term bet for many investors.