The market witnessed a landmark, albeit fleeting, event: Apple briefly surpassed Nvidia in market capitalization, reaching $4.92 trillion compared to its main competitor's $4.86 trillion. Although Nvidia quickly reclaimed the lead, the gap between the giants has narrowed to a minimum, and the battle for the title of the world's most valuable company has entered a new, intense phase.
Apple (AAPL) shares rose 1.76%, hitting an all-time high of $333.26. Meanwhile, Nvidia (NVDA) shares corrected 2.40% to $207.40. The Barchart platform recorded this leadership change in the early hours of Friday's trading, but by the start of the main session, Nvidia had moved back ahead with a market cap of $5.02 trillion versus Apple's $4.89 trillion. The difference, while amounting to roughly $130 billion, is minimal relative to the total value of both corporations.
Stock dynamics show opposing trends. AAPL shares have gained over 7% in the past week, while NVDA has lost nearly 4% over the month amid profit-taking by investors following a historic rally. On the Nasdaq 100 heat map, it is clearly visible that Apple is one of the few mega-cap companies in the green, while the entire chip sector is under pressure. Alphabet fell 4.44%, Broadcom 5.03%, and AMD 5.33%, intensifying the broad sell-off in AI stocks that began in early July.
Different Growth Drivers
The companies are betting on fundamentally different factors. Apple relies on strong demand for the iPhone 17 and record performance from its services division, which generated $30.98 billion last quarter. Shares hit an all-time high amid an AI memory shortage, as buyers shifted to the premium segment. For Nvidia, growth rates continue to accelerate: quarterly revenue reached $81.6 billion — 85.2% higher than a year ago. The data center segment grew 199%, as major players ramp up capacity for artificial intelligence. The Blackwell 300 platform is gaining momentum, and TSMC raised its forecast, indicating a sustained flow of orders for AI chips.
Fundamentally, NVDA's business is accelerating, but investors are taking profits after historic growth. The next market trigger will be Apple's earnings report on July 30. The company will have a month to shape the information narrative, while Nvidia will only report results on August 26. Analysts will focus on services growth, revenue from China ($25.53 billion last quarter), and early signals about the iPhone 18 — Polymarket estimates a 96% probability of its announcement this year.
Technical Analysis and Valuation
On the daily chart, Apple shares have updated all-time highs, recording the latest peak at $334.68. The price has been rising almost without pause since late June, breaking through the important resistance level of $315 on Thursday. This level 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 predominance of bulls, although such high readings could signal a local correction.
From a valuation perspective, 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 margins remain around 75% — significantly higher than Apple's approximate 49%. Apple, in turn, commands a multiple 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.
My comment: The situation resembles a classic "value vs. growth" battle. Apple wins on stability and its services ecosystem; Nvidia wins on exponential AI growth. While NVDA's fundamentals look more compelling, the market has temporarily shifted focus to defensive assets. Apple's July 30 report will be a key watershed: weak results from China or services could return Nvidia to the top even before its own August report.