Apple dethrones Nvidia as the world's most valuable company amid a shift in AI bets

Apple overtook Nvidia on July 17, 2026 to become the world's most valuable company, on a day when its shares held steady while Nvidia's fell 3.5%. According to Reuters, Apple was valued at $4.88 trillion versus Nvidia's $4.86 trillion, reclaiming the top spot for the first time since April of last year. Nvidia had held the crown since June 2025.

The shift reflects, more than a speculative bet on AI, a reassessment of the durability of Apple's revenue. Toni Meadows, head of investment at BRI Wealth Management, noted that Apple was seen as lagging in the AI race for not investing in developing its own models, but that market sentiment has shifted: the company is less exposed to heavy capital expenditure (capex) and better positioned to monetize AI through services, its products' closed ecosystem, and hardware upgrades.

The milestone comes at a symbolic moment for Apple: last month the company launched a long-delayed overhaul of its Siri assistant, aiming to close the gap with other Big Tech firms and AI startups. Some analysts cited in the article believe Apple holds a genuine AI goldmine in the personal data residing on every iPhone, though the challenge lies in the fact that this information remains protected by operating systems in the name of privacy, meaning the company would have to find a way to harness its value without compromising it.

The moment also coincides with a leadership transition: Tim Cook is preparing to hand over the CEO role to hardware veteran John Ternus in September, so this stock market rise could shape how his final months at the helm of the company are remembered.

The article notes that overtaking Nvidia does not necessarily signal a lasting shift in the hierarchy. Nvidia remains one of the biggest beneficiaries of AI infrastructure spending thanks to its graphics processors, and could reclaim the top spot if market sentiment turns again. Benjamin Hall, vice president of alpha research at Segal Marco Advisors, points out that there is no fundamental distinction and that Nvidia will remain a major player going forward. Apple, for its part, also faces its own risks, such as the price increases implemented to offset rising costs, a strategy that could affect demand.

The report adds that enthusiasm for AI has spread to other segments of the semiconductor industry. Micron, the memory chip maker, surpassed a $1 trillion valuation in May, and South Korea's SK Hynix began trading on the Nasdaq this month, adding another name to investors' attention. According to Hall, the arrival of new names could spread investor focus beyond the classic 'Magnificent Seven.'

Finally, the article mentions that the semiconductor sector itself went through turbulence in July, when investors reassessed the sustainability of the so-called artificial intelligence 'trade': the Philadelphia SE Semiconductor Index fell nearly 19% from its all-time highs, though despite that slump, the index has still outperformed Nvidia itself so far this year.