Key facts
- Apple's stock rose 2% on Monday, reaching a market capitalization of approximately $5 trillion.
- Nvidia's stock declined 5% on Monday, with its market capitalization falling to about $4.77 trillion.
- Apple has now surpassed Nvidia to become the world's most valuable company.
- The recent decline in Nvidia shares is linked to jitters about the AI trade and a rotation away from momentum stocks.
- Apple's stock has gained nearly 24% year-to-date in 2026.
Apple has overtaken Nvidia to become the world's most valuable company, with its stock rising 2% on Monday to achieve a market capitalization of approximately $5 trillion. Nvidia's shares fell 5% in the same session, reducing its market cap to about $4.77 trillion.
The shift occurred amid broader market jitters surrounding the artificial intelligence trade and a rotation away from momentum stocks. Investors have become wary of significant capital expenditure spending, particularly following reports that Nvidia is in talks to provide $250 billion in financing for OpenAI's data centers.
While the "Magnificent Seven" group of tech stocks has faced challenges, Apple has seen a year-to-date gain of nearly 24% in 2026. In contrast, Nvidia's shares have gained about 6% this year. The broader semiconductor and memory chip sectors have also experienced significant downturns, with the iShares Semiconductor ETF down 14% and the Roundhill Memory ETF down 29% in the past month.
Apple's recent performance is notable given past criticism regarding its AI strategy. The company may now be benefiting from a rotation into less crowded, consumer-facing investments.