Apple Regains Title as World’s Most Valuable Company After Nvidia Shares Slide

Apple became the world’s most valuable company on Monday after overtaking Nvidia in market capitalization, as investors reacted to reports that the semiconductor giant is in talks to finance part of OpenAI’s ambitious artificial intelligence infrastructure project.

At the close of trading on Wall Street, Apple shares rose 1.17%, lifting the company’s market value to approximately US$4.93 trillion. Nvidia, meanwhile, fell 4.99%, reducing its market capitalization to about US$4.78 trillion.

Nvidia Reportedly Negotiating OpenAI Investment

According to The Wall Street Journal, Nvidia is negotiating a potential US$250 billion investment tied to a massive OpenAI data center project that could ultimately exceed US$500 billion in total value.

The report said the proposed agreement would help finance debt associated with leasing and constructing the facilities, while the companies are also discussing a possible second contract covering the purchase of Nvidia semiconductors for the project.

Although no agreement has been finalized, investors appeared concerned about the scale of the proposed investment, contributing to the sharp decline in Nvidia’s share price.

AI Spending Remains in Focus

The market reaction follows recent earnings reports from Alphabet and Tesla, both of which projected higher spending on artificial intelligence infrastructure. Those announcements also prompted selling pressure in their shares as investors assessed the financial impact of increased capital expenditures.

Apple briefly surpassed Nvidia in market value about 10 days earlier, underscoring the intense competition among technology giants benefiting from the rapid expansion of artificial intelligence.

Race for AI Leadership Continues

Nvidia’s dominant position has been fueled by surging demand for its AI processors, which have become a critical component of data centers supporting generative artificial intelligence applications.

Apple is also expanding its artificial intelligence strategy, although investors have noted that the company has maintained a more measured pace of investment compared with some of its technology peers.

Following Apple and Nvidia, the world’s largest publicly traded companies by market value include Alphabet, Microsoft, Amazon, TSMC, and Broadcom.