Apple reclaims world's top market cap title after 15 months

Apple has reclaimed the title of world's most valuable company after 15 months, riding a market reassessment of AI investment strategies. While Nvidia — which has led the AI investment race — came under pressure from massive capital expenditures, Apple's financial health and stable business model drew renewed attention from investors.

Apple shares listed on NASDAQ closed Monday up 1.17 percent at $336.91. That pushed Apple's market capitalization to $4.95 trillion, restoring its title as the world's most valuable company.

Nvidia, which had held the top spot continuously since June last year, saw its shares fall about 5 percent on Monday to close at $196.51, bringing its market cap to $4.76 trillion.

Apple had briefly overtaken Nvidia intraday on July 17 to claim the top position, but the tables turned before the close and Nvidia finished that session in first place. On Monday, however, Apple shares climbed consistently from the opening bell while Nvidia extended its decline, creating a clear divergence between the two stocks throughout the session.

Apple had lost the top spot last April, when concerns mounted that it would be directly hit by the reciprocal "Liberation Day" tariffs announced by President Donald Trump, and criticism intensified that the company was slow to adopt AI. The title went to Microsoft, which was riding its partnership with OpenAI.

Microsoft's reign was short-lived, however, as an explosion in demand for AI chips handed the crown to Nvidia within about two months. Nvidia then grew at a blistering pace, crossing the $4 trillion market cap threshold last July and surpassing $5 trillion for the first time in October.

Nvidia's market cap peaked at an all-time high of $5.7 trillion on May 14 before beginning to retreat.

Apple's reversal — from being dismissed as an "AI latecomer" to reclaiming the top market cap position — reflects a shift in how investors view AI capital expenditure.

Capital spending by leading AI companies — Alphabet (Google's parent), Microsoft, Amazon and Meta — is expected to reach $724 billion this year alone, with projections pointing to a further increase to $950 billion next year.

These companies have been rushing to raise funds through bond issuances and share offerings, but have yet to convince investors that they can recoup those investments quickly.

Apple, by contrast, is being reappraised for its financial strength, having avoided pouring large sums into AI. Its revamped Siri voice assistant, included in the beta version of its operating system, has also drawn positive reviews.

Jay Woods, chief market strategist at Freedom Capital Markets, told Yahoo Finance that Apple "was once criticized for not investing more in AI, but that actually helped it avoid some of the capital expenditure pitfalls."

Daniel Newman, CEO of Futurum Group, told The New York Times that "people see AI-related stocks as volatile and think of Apple more like owning an index," adding that Apple is viewed as a kind of "safe asset."