Battle of the Titans: Apple briefly surpassed Nvidia in market capitalization — what’s behind this surge
At the start of Friday's trading session, a significant, albeit short-lived, event occurred: Apple's market capitalization reached $4.92 trillion, surpassing Nvidia's $4.86 trillion. This briefly allowed the Cupertino-based corporation to claim the title of the world's most valuable company. Although Nvidia quickly regained its lead, the gap between the giants has narrowed to a minimum, indicating an extremely intense battle for supremacy.
AAPL shares surged 1.76% to an all-time high of $333.26, while NVDA shares, conversely, lost 2.40%, falling to $207.40. This divergent dynamic has been the sharpest since the start of the year.
At the heart of Apple's surge is a capital shift away from the semiconductor sector. Investors are actively taking profits following the dizzying rally in the AI sector. Over the past week, Apple shares have gained more than 7%, while Nvidia has lost nearly 4% over the month due to persistent profit-taking. This is clearly visible on the Nasdaq 100 heat map: Apple is one of the few 'mega-cap' companies in the green, while the entire chip sector, including Alphabet (-4.44%), Broadcom (-5.03%), and AMD (-5.33%), came under pressure.
Fundamental Drivers: Apple's Services vs. Nvidia's Chips
Apple is betting on strong demand for the iPhone 17 and record performance from its services division, which generated $30.98 billion last quarter. Additionally, amid a shortage of AI memory, buyers have shifted to the premium segment, boosting AAPL's stock price.
For Nvidia, growth rates continue 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 weakening fundamental demand: the Blackwell 300 platform is gaining traction, and TSMC raised its forecast, indicating a sustained flow of orders for AI chips.
The key point: investors are taking profits after Nvidia's historic growth, despite the fact that Nvidia's own business continues to accelerate. This is a classic 'buy the rumor, sell the news' scenario, which has temporarily weakened the chip giant's position.
Technical Analysis: AAPL Has Momentum, but Nvidia Can Respond
On the daily chart, Apple shares hit new all-time highs, breaking through important resistance at the $315 level. This level had capped gains in May and mid-July, and it could now act as support during potential pullbacks. The upward move began after a bounce from the $275-280 zone on June 26. The daily RSI has risen above 70, indicating a clear dominance of bulls, although such levels can signal a local correction.
The next trigger for the market is Apple's earnings report on July 30. Until then, the company has a month to shape the news narrative, while Nvidia will remain influenced by broader market sentiment. Strong results in the 'Services' and 'China' segments could solidify AAPL's gains. However, if any weaknesses emerge, Nvidia will have a chance to surge ahead again before its August report.
Expert Opinion: The current situation is not just a battle for the title, but a reflection of shifting market sentiment. Investors are rotating out of 'pure' AI stories into more diversified assets like Apple, with its strong services business and massive buyback program. However, Nvidia's fundamentals remain exceptionally strong, and once the profit-taking subsides, we could see a powerful rebound in NVDA. Apple's July report will be a key catalyst determining which giant will dominate in the coming months.