Apple Reclaims Top Global Market Cap After 15 Months... Reassessed as AI Skepticism Grows

Concerns Over Excessive AI Investment Push Nvidia Down to Second Place

Reuters Yonhap News

Apple has reclaimed its position as the world's most valuable company by market capitalization, fifteen months after being overtaken by Nvidia in April last year. With recent concerns about excessive investment in the artificial intelligence (AI) sector, AI-related stocks such as Nvidia have plummeted, making Apple’s upward trend stand out. Some analysts say that Apple’s cautious approach to investing in AI and its focus on financial stability have been reflected in its share price.

On the 27th (local time), Apple's share price on the US Nasdaq market closed at $336.91, up 1.17% from the previous session. Apple’s market capitalization reached $4.948 trillion (about 7,260 trillion won), once again securing its place as the company with the largest market capitalization in the world. Nvidia, which had taken over Apple’s spot, fell 4.99% from the previous day to $196.51. Nvidia’s market capitalization dropped to $4.756 trillion, pushing it down to the second spot globally.

Apple has long been considered behind other big tech companies in the area of AI. Because of this, Apple ceded its top market cap position to Microsoft (MS) in early April of last year—the first time Apple had lost the top spot in five years. However, two months later, Microsoft likewise relinquished the lead to Nvidia. Nvidia’s market capitalization surged to an all-time record of $5.7 trillion last May. However, concerns about excessive AI investment, along with external risks such as the impact of the Iran war, led to a sharp decline.

Apple has been viewed as cautious in AI investment, often dubbed a "latecomer to AI." The company has preferred to integrate Google’s AI models and cloud computing services into its products, maintaining its distance from direct AI investment. In contrast, companies such as Google, Microsoft, Amazon, and Meta have collectively invested $724 billion in AI this year alone. These companies plan to invest $950 billion more next year.

Tim Cook, Apple’s current Chief Executive Officer (CEO), as well as John Turnus, the Senior Vice President slated to become CEO in September, have both signaled a cautious stance on AI investment. During Apple’s conference call in April, Turnus stated, "We plan to maintain the financial discipline demonstrated during Tim Cook’s tenure as CEO." Tim Cook’s approach to financial discipline centers on proper supply chain and cost management, generating stable cash flow, and returning profits to shareholders.

Meanwhile, experts note that as worries about excessive AI investment spread, Apple’s financial stability is gaining renewed attention in the market. Daniel Newman, CEO of the Futurum Group, told the New York Times (NYT), "The strengthening of investor sentiment toward Apple can be seen as a kind of flight to safety," adding, "As the volatility of AI-related stocks increases, more investors are beginning to view Apple not just as an individual stock, but as a safe index-like investment."

This content was produced with the assistance of AI translation services.