Apple regains the top position as concerns over AI infrastructure spending weigh on technology stocks, while its shares outperform Nvidia in 2026.
Apple has overtaken Nvidia to become the world’s most valuable company, reaching a market capitalisation of $5.03 trillion on Friday, despite a 1.2% decline in its share price.
Nvidia, meanwhile, saw its shares fall by 4.2%, bringing its market value down to $4.93 trillion as investors raised concerns about whether massive investments in artificial intelligence (AI) infrastructure will generate the expected returns.
This marks the first time Apple has moved ahead of Nvidia since briefly taking the lead in late July. The latest shift also reflects a significant difference in the companies’ stock performance during 2026. Apple shares have gained 27% so far this year, compared with Nvidia’s increase of 9.7%.
Investor concerns have intensified over the growing costs of building AI data centres and the potential returns from such investments. Several major technology companies, including Intel and Amazon, have disappointed investors with their latest financial results, following earlier underwhelming reports from Alphabet and Meta.
Apple has largely avoided the heavy AI infrastructure spending undertaken by several of its technology rivals. Its comparatively lower capital expenditure has helped support its financial position and share performance.
The company is expected to increase its free cash flow by 38% to $142 billion in fiscal 2026, which ended on September 30. By comparison, Alphabet and Amazon have experienced negative free cash flow amid rising AI-related spending, increasing their reliance on debt.
The broader technology market has also faced pressure. The Nasdaq 100 declined 6.7% in October, marking its worst monthly performance since March 2025.
Companies closely associated with AI infrastructure recorded particularly steep losses. CoreWeave and Nebius each fell by more than 30% during October, while Intel shares dropped over 45%, marking the company’s biggest monthly decline in more than four decades.
Apple’s return to the top spot highlights how investor priorities are shifting towards profitability and cash generation as the technology industry continues to invest heavily in artificial intelligence.