Apple nvidia market cap flip puts iPhone maker back on top

Apple overtook Nvidia in market cap on Monday, ending the session as the world’s most valuable listed company for the first time since April 2025, according to CNBC. Nvidia shares fell 5%, leaving the AI chipmaker valued at $4.77 trillion, while Apple gained 1% to reach a market capitalization of $4.95 trillion.

The shift marked a notable change in leadership among the largest U.S. technology companies. Nvidia had been in first place since June 2025, when it moved ahead of Microsoft, and CNBC reported that the chipmaker briefly reached a $5 trillion valuation in October.

Why did Apple pass Nvidia in market value?

CNBC attributed Nvidia’s decline on Monday to broader weakness in AI chip stocks, with investors concerned about the large costs tied to building artificial intelligence infrastructure. Apple’s advance came ahead of its fiscal third-quarter earnings report, scheduled for Thursday.

A company’s market capitalization reflects its share price multiplied by its shares outstanding. That means leadership among the largest companies can change quickly when investors reprice earnings prospects, capital spending plans or exposure to fast-growing sectors such as artificial intelligence.

So far in 2026, Apple has outpaced Nvidia in stock performance. CNBC reported that Nvidia shares have risen 4% this year, while Apple shares have climbed 24%.

One reason for Apple’s relative strength, according to CNBC, is investor approval of its more restrained approach to AI capital spending. The iPhone maker has preferred to rent computing capacity rather than commit heavily to building its own AI infrastructure.

How the AI trade has shifted

Nvidia’s revenue has been supported by three years of AI-driven growth, CNBC reported, as demand surged for graphics processing units, the chips widely used to train and run AI systems. GPUs perform many calculations at once, which makes them well suited to the workloads behind large AI models.

CNBC said some investors have shifted attention away from GPUs toward memory chips and other data center infrastructure that also benefit from AI demand. Companies cited in that context include Micron Technology, SK Hynix and Sandisk.

The change in market leadership does not remove Apple’s own exposure to AI-related supply pressures. CNBC reported that Apple’s Thursday earnings are expected to offer the company’s first look at financial effects from a global memory chip shortage linked to AI demand.

That shortage has already affected Apple’s product pricing, according to CNBC. The company raised prices for Mac and iPad models in June after the memory supply squeeze put pressure on costs.

For investors and corporate technology buyers, Monday’s move underscored a broader repricing within the AI supply chain. The market rewarded Apple’s lighter spending model on the day, while Nvidia remained tied to investor expectations for AI infrastructure demand and the costs required to support it.

This story draws on original reporting from CNBC.