Apple Reclaims No. 1 Spot in Market Cap, Overtaking NVIDIA as Its Lagging AI Investment Turns Into a Blessing in Disguise

[Financial News]  

Apple regained the world’s No. 1 spot in market cap on the 27th (local time).
At the close, Apple’s market cap stood at $4.948 trillion, surpassing NVIDIA’s $4.756 trillion. It took back the global top spot 15 months after losing it in April last year.
NVIDIA closed at $196.51, down $10.33, or 4.99%, while Apple ended the session at $336.91, up $3.89, or 1.17%.
As AI- and semiconductor-related stocks have struggled recently, NVIDIA’s year-to-date gain narrowed sharply to 5.4%. Apple, meanwhile, surged 24%, laying the groundwork for its return to the No. 1 spot in market cap.
Apple, which had been seen as lagging in the AI race and posted the weakest stock performance among the M7 megacap tech companies, has emerged as the winner in a changed market environment and reclaimed its place as the world’s top company. It is a classic case of a blessing in disguise in the AI era.
Jay Woods, chief market strategist at Freedom Capital Markets, told Yahoo Finance, "The criticism Apple faced was that it was not spending more on AI, but that also helped it avoid some of the capital expenditure trap."
In contrast to Alphabet Inc. and Tesla, which have sharply increased AI capital spending recently, Apple has cut capital expenditures for three straight quarters.
Alphabet Inc. has risen just 4% so far this year, while Tesla has plunged 31%.
Meanwhile, Apple will release its quarterly earnings after the market closes on the 30th.


[email protected] Song Kyung-jae Reporter