Apple reclaimed the title of the world's most valuable company on Friday, overtaking Nvidia as investors grew more confident in its artificial intelligence strategy.
Nvidia's shares fell as much as four percent amid concerns about AI equity valuations, giving it a market capitalization of roughly $4.8 trillion. That was slightly below Apple's $4.9 trillion valuation. The stocks later traded closely as both companies vied for the top spot.
Nvidia's stock has surged more than 1,200% since early 2023, fueled by the AI boom. Its graphics processing units became the core hardware for training large language models from firms like OpenAI, Anthropic, and Google.
However, analysts have recently questioned whether massive investments in Nvidia's chips will pay off as new AI products launch. These concerns have grown as OpenAI and Anthropic prepare for potential public offerings.
In contrast, Apple's investor confidence has strengthened. Its shares have risen about 20% since late June, bolstered by the unveiling of a redesigned Siri that received positive early reviews.