Apple overtakes Nvidia to become world's most valuable company again

Apple has once again reclaimed the top spot as the world's most valuable company. After the trading session on Friday, July 18, the tech giant's market capitalisation stood at $4.88 trillion, surpassing Nvidia's $4.86 trillion.

Nvidia's share price fell by about 3.5 per cent on that day. Market analysts said the shift reflected changing investor sentiment towards artificial intelligence investments.

This is the first time since April last year that Apple has returned to the top in market value. In October last year, Nvidia became the first company to reach the $5 trillion market capitalisation milestone, driven by surging demand for its GPUs used in AI infrastructure.

However, analysts said Apple's rise does not mean Nvidia's dominance is over. Nvidia remains the strongest player in the high-performance GPU market used for AI infrastructure.

Tony Meadows, head of investment at BRI Wealth Management, said Apple was once seen as lagging in the AI race, but that perception has begun to change recently.

Apple recently unveiled a major AI upgrade to its digital assistant Siri, adding advanced AI features that could strengthen its position against OpenAI, Google, Meta and others.

Analysts said returning to the top in market value is a significant achievement for Apple as CEO Tim Cook approaches the final phase of his leadership. He is set to hand over his role to hardware executive John Ternus in September.

However, Apple faces challenges, including rising production costs leading to price hikes that could impact consumer demand.

Experts also remain optimistic about Nvidia's prospects. They believe a shift in investor sentiment could help Nvidia reclaim the top spot quickly.

The expansion of the AI sector is also driving demand for high-performance memory chips, benefiting companies like Micron and SK Hynix.

Analysts expect the competition for the top spot among Apple, Nvidia and other major tech companies to intensify in the coming years.