During Friday's pre-market trading session, Apple's market capitalization briefly surpassed Nvidia's, reaching $4.92 trillion compared to the competitor's $4.86 trillion. However, by the start of the main session, Nvidia regained the lead with a market cap of $5.02 trillion versus Apple's $4.89 trillion. Nevertheless, the gap between the two giants has narrowed to a minimum — just about $130 billion.
Apple (AAPL) shares rose 1.76% to a record $333.26, while Nvidia (NVDA) shares fell 2.40% to $207.40. This rivalry is the most intense since the start of the year. The dynamics of the companies are diametrically opposed: AAPL has gained over 7% in the last week, whereas NVDA has lost nearly 4% over the month amid profit-taking by investors.
On the Nasdaq 100 heat map, Apple is one of the few mega-cap companies in the green zone. The entire chip sector came under pressure: Alphabet fell 4.44%, Broadcom dropped 5.03%, and AMD declined 5.33%. This intensified the sell-off in AI company stocks that began in early July.
Different Growth Drivers
The companies are betting on different drivers. Apple relies on strong demand for the iPhone 17 and record performance from its services division, which brought in $30.98 billion last quarter. Shares already hit an all-time high in early July — amid a shortage of AI memory, buyers shifted to the premium segment.
Nvidia's growth rate continues to accelerate. The company's quarterly revenue was $81.6 billion — 85.2% higher than a year ago. The data center segment grew by 199%, as major players ramp up capacity for artificial intelligence. There are no signs of declining demand in the fundamentals. The Blackwell 300 platform continues to gain momentum, and TSMC raised its forecast, indicating a steady flow of orders for AI chips. Investors are taking profits after historic growth, despite NVDA's business accelerating.
Apple's July 30 Report Could Decide Who Becomes the World's Most Valuable Company
The next trigger for the market will be set by Apple. The company releases its report on July 30, while Nvidia will only report results on August 26. Until then, Apple will have a month to shape the information agenda, while Nvidia will remain under the influence of overall market sentiment.
Analysts will focus on services growth, revenue from China, and early signals about the iPhone 18. Last quarter, revenue in the region was $25.53 billion, and on Polymarket, the probability of an iPhone 18 announcement this year is estimated at 96%.
Company valuations shape the choice for investors. Nvidia trades at roughly 22 times forward annual earnings with a PEG ratio of 0.6 and a target of $91 billion in quarterly revenue. Gross margin remains around 75% — much higher than Apple's approximately 49%.
Apple's multiple is closer to 32. This premium is explained by a streak of eight quarters of earnings per share growth, a new $100 billion buyback, and a $30 billion deal with Broadcom that strengthens the company's position in the chip segment.
Apple Shows Steady Growth Above $315
On the daily chart, Apple shares hit all-time highs on Thursday and Friday — the latest peak was recorded at $334.68. The price has been rising almost without pause since late June. On Thursday, Apple broke through the key resistance level of $315. This level had capped growth in May and mid-July; it could now become support during potential pullbacks.
The upward move began after a bounce from the $275-280 zone on June 26. This range had acted as resistance since February, and a successful test gave bulls confidence for a new wave of growth.
The move is supported by momentum. The daily RSI has risen above 70, indicating a clear predominance of bulls, although such high values could signal a possible local correction.
Whether Apple maintains its lead will become clear after the July 30 report. Strong results in the Services and China segments could solidify its success. But if weaknesses emerge, Nvidia will have a chance to surge ahead again before its August report.
My analysis: The narrowing gap between Apple and Nvidia is not a coincidence but a reflection of shifting market sentiment. Investors are flowing from the overheated AI sector into more stable assets like Apple, which benefits from strong consumer demand and business diversification. However, fundamentally, Nvidia remains the growth leader — its margins and revenue growth rates are incomparably higher. Apple's brief leadership is more of a correction than a trend change, but the July 30 report could be a key moment for determining the short-term direction.