Apple has overtaken Nvidia to become the world’s most valuable company, reclaiming the top position as concerns over the rising cost of artificial intelligence (AI) investments weigh on technology stocks.At the close of trading on Friday, Apple’s market capitalisation stood at $5.03 trillion, ahead of Nvidia’s $4.93 trillion. The change came even as both companies’ shares ended lower. Apple declined 1.2 per cent, while Nvidia fell 4.2 per cent.This is the first time Apple has moved ahead of Nvidia since briefly holding the top spot in late July.The shift in rankings comes at a time when investors are reassessing the financial implications of the massive investments being made by technology companies in AI. Several major firms, including Amazon, Intel, Alphabet and Meta Platforms, have faced pressure following their latest financial results, adding to uncertainty over the returns from AI-related expenditure.Apple’s comparatively limited spending on capital-intensive AI infrastructure has helped distinguish it from its rivals. While companies such as Nvidia have benefited from the surge in demand for AI computing, the scale of investment across the sector has raised questions about its long-term financial sustainability.The difference is also reflected in their stock performance. Apple’s shares have risen 27% in 2026, more than twice the gain recorded by Nvidia, making it the strongest performer among the Magnificent Seven technology companies.Apple is also expected to see its free cash flow rise 38% to $142 billion in fiscal 2026, which ended on September 30. In contrast, Alphabet and Amazon have seen their free cash flow turn negative amid heavy spending, increasing their need to tap debt markets for funding. Higher interest rates have further raised borrowing costs.The pressure has extended beyond the largest technology companies. The Nasdaq 100 index declined 6.7 per cent in October, its steepest monthly fall since March 2025.AI infrastructure companies have also taken a hit. Shares of data centre operators CoreWeave and Nebius Group have fallen more than 30 per cent this month. Intel has lost over 45 per cent in October, putting it on course for its biggest monthly decline in more than four decades of Bloomberg data.
