Apple closes in on Nvidia in race for world's most valuable company

Apple is closing in on Nvidia in the battle to become the world’s most valuable company, as investors continue to reassess which businesses stand to benefit most from the artificial intelligence boom.

According to a monitored public feed from Dawn Tech, Apple was valued at about $4.90 trillion in premarket trading on Friday after its shares edged higher, putting it nearly level with Nvidia. Nvidia slipped about 2.4 per cent, leaving the two companies separated by only a narrow margin. If Apple moves ahead, it would retake the top position for the first time since April last year.

The close contest underscores a shift in investor sentiment. For much of the past year, Nvidia has dominated the market’s AI trade, powered by soaring demand for the chips that underpin generative AI systems. But investors are now looking beyond the most obvious beneficiaries and reassessing how AI could lift other technology giants as well.

Apple’s rise in the rankings also reflects a broader change in how the market views its role in artificial intelligence. Once described by some investors as trailing rivals in AI investment, the company is now being seen as better positioned to turn AI features into revenue through its services business, device ecosystem and upgrades to hardware. Toni Meadows, head of investment at BRI Wealth Management, said Apple had previously been viewed as a laggard because it was not pouring money into model development, but that sentiment has since improved. She said the company faces less pressure from heavy capital spending and may be able to monetise AI more effectively through its existing products.

The race also comes at an important moment for Apple’s leadership. Chief executive Tim Cook is preparing to hand over the role to hardware veteran John Ternus in September, and the company’s progress in AI could influence how Cook’s final months are judged.

Apple recently introduced a long-awaited overhaul of Siri, betting that a stronger voice assistant will help it compete more effectively with larger tech rivals and newer AI-focused firms. Some analysts also believe Apple may have an advantage because of the personal data stored on iPhones, which could help make Siri more useful and more responsive if the company finds a way to use that information while preserving its privacy model.

Nvidia, however, remains a major force in the AI market. It became the first company to surpass a $5 trillion valuation in October and continues to benefit from spending on AI infrastructure. Even if Apple briefly overtakes it, that would not necessarily mark a permanent change in the market order. Nvidia could return to the top if investor enthusiasm shifts again.

The AI-driven rally has also extended beyond the two biggest names. Memory chipmakers have been among this year’s standout winners, with Micron reaching a $1 trillion market value in May. South Korea’s SK Hynix also entered the Nasdaq earlier this month, adding another high-profile name to the sector’s growing list of market favourites.

At the same time, the semiconductor rally has faced fresh pressure. In July, investors began questioning whether the pace of AI spending could be sustained, sending the Philadelphia SE Semiconductor index down by almost 19 per cent from its record high. Even with that decline, the index has still outperformed Nvidia this year.

This article is based on a monitored public feed. Source attribution: Dawn Tech. Source: Dawn Tech - https://www.dawn.com/news/2016222/apple-closes-in-on-nvidia-in-race-for-worlds-most-valuable-company