How Apple beat Nvidia in the race to become world's most valuable company

Apple has overtaken Nvidia to become the world's most valuable company again, despite spending far less on AI infrastructure than other Big Tech firms

Apple claimed the title of the world's most valuable listed company on Monday, overtaking Nvidia after a rise in its share price lifted its market value to about $4.95 trillion, CNBC reported. This development comes even as Apple continues to spend far less on artificial intelligence (AI) infrastructure than many of its Big Tech rivals.

 

Nvidia, whose valuation had surged on the back of the AI boom, saw its shares fall 5 per cent during the session, reducing its market capitalisation to around $4.77 trillion.

 

Apple regains the top position

 

Apple and Nvidia have been closely competing for the top spot in recent weeks. Apple had briefly moved ahead on July 17, but Nvidia soon regained the lead.

 

 

The AI chipmaker had held the top position for almost a year, driven by strong demand for its graphics processing units (GPUs), which power AI models. In October 2025, Nvidia became the first company to cross a market value of $5 trillion.

 

Monday's decline in Nvidia shares widened the gap between the two companies.

 

Why Nvidia shares fell

 

Nvidia's stock came under pressure after reports raised questions about the growing cost of AI infrastructure projects.

 

According to The Wall Street Journal, Nvidia is discussing a financial guarantee worth about $250 billion for an OpenAI data centre project in Ohio. The guarantee would help the project secure funding, although discussions are still underway and the final terms could change. The report added to investor concerns over the rising financial commitments linked to AI expansion.

 

Unlike Alphabet, Microsoft, Amazon and Meta, Apple has taken a different approach to AI spending. The company has reduced its capital expenditure over the past three quarters on data centres and AI infrastructure. This strategy had earlier drawn criticism, with some analysts saying Apple was falling behind in the AI race.

 

However, the company's recent rise in market value has shifted attention to the benefits of keeping spending under control.

 

Focusing on AI without massive investments

 

Apple has continued expanding its AI offerings without matching the spending levels of cloud computing companies.

 

At its Worldwide Developers Conference (WWDC) in June, Apple unveiled a redesigned Siri powered by AI. The updated assistant can hold more natural conversations, understand personal context and interact with information shown on a user's screen.

 

The launch came after delays in rolling out AI features that were first announced in 2024.

 

Apple says many AI tasks are processed directly on users' devices, while more advanced requests are handled through its Private Cloud Compute system. In June, the company expanded this cloud-based system beyond its own data centres.

 

Earnings in focus

 

Investors will closely watch Apple's fiscal third-quarter earnings, scheduled to be announced after US markets close on July 30. The results will be the first since Apple introduced its latest Siri and Apple Intelligence features.

 

In the previous quarter, Apple reported revenue of $111.2 billion, up 17 per cent from a year earlier. Earnings per share rose 22 per cent to $2.01, while iPhone sales for the March quarter hit a record and services revenue reached an all-time high.

 

The company has not revealed a separate spending target for Apple Intelligence.