Apple Reclaims Top Spot as AI Spending Fever Cools

Apple Inc. has reclaimed its position as the world's most valuable company, overtaking Nvidia Corp., which had held the title since May 2025. According to reporting from the Financial Post, Nvidia's market capitalization fell to US$4.8 trillion following a 3.7 per cent share drop on Friday, while Apple's valuation rose to US$4.9 trillion after a 0.4 per cent gain.

This shift is driven by a broader rotation within the technology sector. Investors are moving away from chipmakers and companies spending heavily on artificial intelligence, amid growing concerns that the AI rally may be overdone and that infrastructure spending is nearing a peak. This sentiment was exacerbated by reports that a new AI model from Chinese startup Moonshot could rival offerings from Anthropic and OpenAI, both of which utilize Nvidia chips.

Apple has emerged as a primary beneficiary of this rotation, with its stock rising 23 per cent this year—the strongest performance among the "Magnificent Seven"—and climbing 21 per cent from a low in June. Beyond the sector rotation, the company received government approval to launch Apple Intelligence in China.

HSBC recently upgraded Apple from hold to buy. Analyst Nicolas Cote-Colisson noted that Apple is at an "operational turning point," stating the company is well-positioned to leverage its 2.5 billion installed devices while avoiding the "(too) high capex debate" currently surrounding AI spenders.