Nvidia lost its position as the world’s most valuable company after an AI chip selloff erased billions from its market value, paving the way for Apple to regain the top spot.
Apple reclaimed the title of the world’s most valuable publicly traded company after a sharp selloff in AI chip stocks briefly pushed Nvidia below the iPhone maker in market value.
Apple has overtaken Nvidia to become the world’s most valuable publicly traded company, following a broad selloff in semiconductor stocks that erased billions of dollars from Nvidia’s market capitalization.
During Friday’s trading session, Nvidia shares fell as much as 4%, reducing the AI chipmaker’s market value to around $4.8 trillion, just below Apple’s $4.9 trillion. Although Nvidia later recovered some of its losses, the two technology giants continued trading closely for the top position.
AI Selloff Hits Nvidia
Nvidia has been the biggest beneficiary of the artificial intelligence boom sparked by the launch of ChatGPT in late 2022.
Its graphics processing units (GPUs) have become the backbone of AI infrastructure, powering the training and deployment of large language models developed by companies such as OpenAI, Anthropic, and Google.
However, investors have recently become more cautious about the sector, questioning whether the massive investments in AI chips, data centers, and software will generate returns that justify today’s lofty valuations.
The latest concerns triggered a broad decline in semiconductor stocks, weighing heavily on Nvidia’s share price.
Nvidia’s Remarkable Rise
Despite the recent pullback, Nvidia remains one of the biggest stock market success stories of the AI era.
Following its 10-for-1 stock split in June 2024, the company’s shares climbed from a split-adjusted $14.86 in January 2023 to around $205 by mid-July 2026, representing a gain of more than 1,200%.
That extraordinary rally helped Nvidia become the world’s most valuable company in 2025, reflecting investor confidence in the rapid growth of artificial intelligence.
Growing Questions Around AI Valuations
Market sentiment has shifted in recent weeks as investors reassess whether the enormous spending on AI infrastructure can be sustained.
The debate has intensified after AI leaders OpenAI and Anthropic, two of the world’s most valuable private companies, filed for initial public offerings, prompting fresh scrutiny of AI-related valuations.
Meanwhile, SpaceX, which also includes Elon Musk’s AI venture xAI, experienced sharp post-IPO volatility. After surging shortly following its June listing, the stock has given back much of those gains, adding to concerns that excitement surrounding AI investments may have outpaced fundamentals.
These developments have fueled discussion on Wall Street about whether parts of the AI sector are entering bubble territory.
Apple Benefits From a Different Strategy
Unlike many of its technology peers, Apple has taken a more measured approach to artificial intelligence.
The company has focused on integrating AI features into its products rather than investing heavily in building large language models or expanding massive AI infrastructure.
Combined with resilient iPhone sales and a stable business model, Apple’s cautious strategy has reassured investors during the recent market volatility, helping it regain the title of the world’s most valuable company.
What’s Next?
While Nvidia remains at the center of the AI revolution, the recent shift in market leadership highlights a change in investor sentiment.
As companies continue to invest billions in artificial intelligence, markets are increasingly looking beyond rapid growth to assess whether those investments can translate into sustainable profits. For now, Apple has emerged as the biggest beneficiary of that changing outlook.
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Semiconductor shares tumble as investors question lofty AI stock valuations.
Bloomberg
Source: Gulf News
