Apple Retakes Top Valuation Spot as Wall Street Rewards Smart AI Spending

Apple has become the world’s most valuable company for the first time since April 2025, overtaking Nvidia, which had held the top spot since June 2025, Reuters reported Friday (July 17).

The iPhone maker was valued at $4.88 trillion Friday, with its shares holding steady, while Nvidia’s valuation declined about 3.5% to $4.86 trillion, according to the report.

Apple’s shares have outperformed those of other members of the Magnificent 7 this year, per the report. The Magnificent 7 are seven of the world’s largest technology and consumer companies, including Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia and Tesla.

BRI Wealth Management Head of Investment Toni Meadows said in the report that investors who once viewed Apple as falling behind in the AI race because it wasn’t developing new models now see the company as less exposed to capital expenditure intensity and better able to monetize AI.

Some analysts also point to Apple’s opportunity to use the data on customers’ iPhones to enable its AI assistant, Siri, to provide those customers with better answers, according to the report.

Nvidia, as a chipmaker, is still benefiting from the AI boom and could retake the top spot, the report said.

CNBC reported Friday that Apple’s shares have surged by 22% this year and that they hit new highs this week. Nvidia shares have risen 7%.

The report attributed Apple’s gains to investors’ positive outlook on the company’s AI plans and its capital spending model.

Bloomberg reported Friday that investors are moving away from companies that are spending large amounts on AI.

The report added that Apple’s stock has gained 23% this year, while the Nasdaq 100 Index has gained 12% and the S&P 500 Index has risen 8.6%.

Apple is also set to roll out Apple Intelligence in China, having secured approval from the Chinese government, per the report.

It was reported in May that as other tech companies’ AI spending balloons, some investors have begun to worry about overspending on AI computing capacity and to look more favorably on Apple’s caution.

Previously, investors and commentators had criticized Apple’s hesitance to invest further in AI and said the company could be left behind as AI becomes a greater part of personal devices.

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