Apple has overtaken Nvidia as the world’s most valuable company, ending the chipmaker’s reign at the top go global markets. At Monday (July 27) close, Apple’s market capitalisation stood at $4.95 trillion, compared with Nvidia’s $4.77 trillion. The iPhone maker’s shares rose 1% ahead of its earnings report later this week, while Nvidia fell 5% amid investor concerns over the soaring costs of AI infrastructure. Nvidia had held the crown since June 2025, briefly touching a $5 trillion valuation last October. But in 2026, its shares have gained only 4%, compared with Apple’s 24% surge. Analysts say Nvidia’s “Chinese trouble” — including export restrictions and intensifying competition from Chinese AI startups — has added to investor unease, even as the company enters its third year of massive AI-driven sales growth.Apple’s strategy pays offApple has outperformed by avoiding heavy capital expenditures on AI, preferring to rent computing capacity rather than build its own. Investors have rewarded this cautious approach, especially as Nvidia’s costly megaprojects raise questions about sustainability. Apple is expected to reveal on Thursday how the global memory chip shortage has affected its finances, after the company raised Mac and iPad prices in June.While Nvidia remains central to the AI boom, investors are increasingly turning to memory chipmakers such as Micron Technology, SK Hynix, and Sandisk, which benefit from surging demand for data center infrastructure. The shift underscores how the AI race is broadening beyond GPUs to other critical components.Apple's recent rally has also been supported by long-awaited government approval to launch Apple Intelligence in China, a move that is expected to strengthen the company's growth prospects.Nvidia's shares came under pressure after reports that a new AI model developed by Chinese startup Moonshot rivals leading models from OpenAI and Anthropic, both of which rely on Nvidia's chips. The development has raised fresh concerns among investors that the massive spending on AI infrastructure could be nearing its peak.Adding to Apple's momentum, HSBC upgraded the stock to "buy" from "hold", citing the company's improving outlook.Apple "is now at an operational turning point," analyst Nicolas Cote-Colisson wrote. "Not only can the company stay away from the (too) high capex debate," but "it is also well placed to leverage its 2.5bn installed device base with its forthcoming revamped Apple Intelligence."