The market witnessed a landmark moment: Apple briefly overtook Nvidia in market capitalization during Friday's trading session, becoming the world's most valuable company. AAPL's market cap reached $4.92 trillion compared to NVDA's $4.86 trillion. Although the lead quickly returned to Nvidia, the gap between the tech titans has narrowed to its smallest since the start of the year.
Apple shares rose 1.76%, hitting an all-time high of $333.26. Meanwhile, Nvidia shares corrected 2.40% to $207.40. The reason is a massive profit-taking in the chip sector: Alphabet lost 4.44%, Broadcom 5.03%, and AMD 5.33%. Investors are shifting funds from overheated AI stocks into more stable assets, with Apple being the main beneficiary.
Different Growth Drivers
Apple is betting on strong demand for the iPhone 17 and a record $30.98 billion in revenue from its services division. A shortage of memory for AI chips has pushed buyers into the premium segment, benefiting the manufacturer. Nvidia, on the other hand, is showing explosive growth: quarterly revenue rose 85.2% year-over-year to $81.6 billion, while the data center segment grew 199%. There are no fundamental reasons for the decline — the Blackwell 300 platform is gaining momentum, and TSMC has raised its forecasts, confirming sustained demand for AI chips.
The key difference lies in valuation. Nvidia trades at a PEG of 0.6 with a multiple of 22 on forward earnings and a gross margin of around 75%. Apple trades at a multiple of 32, but this is justified by eight quarters of earnings per share growth, a new $100 billion buyback, and a $30 billion deal with Broadcom that strengthens its position in the chip segment.
Technical Analysis of AAPL
On the daily chart, Apple has confidently broken through the $315 resistance level, which had capped growth in May and mid-July. This level could now act as support. The upward momentum began after a bounce from the $275-280 zone on June 26. The RSI has risen above 70, indicating bullish dominance but signaling a possible local correction.
The next catalyst is Apple's earnings report on July 30. Strong results in services and China could solidify its success. Weak spots, on the other hand, would give Nvidia a chance to reclaim the lead before its own report on August 26.
Expert opinion: The market is undergoing a structural revaluation — investors are tired of the extreme volatility in the AI sector, but fundamentally Nvidia remains stronger. Apple's temporary lead is more of a defensive move than a trend change. The true outcome of the battle will be decided after both companies' earnings reports.