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Apple surpassed Nvidia on Friday to become the world's most valuable company, reshuffling the ranks of tech giants as investors reassess their AI expectations.

Apple's market value reached $4.88 trillion on Friday with its stock stable, while Nvidia's value stood at about $4.86 trillion after a 3.5% decline, according to Reuters.

This shift in ranking shows that investors are broadening their focus to include companies beyond the most prominent beneficiaries of the AI boom, such as Nvidia, which had been at the forefront for nearly a year. Apple reclaims the top spot for the first time since April of last year.

Tony Meadows, head of investment at BRI Wealth Management, said: "Apple was seen as lagging in the AI race because it didn't spend on developing models, but that perception has now changed."

He added: "Apple is less exposed to capital expenditure pressures, is better positioned to monetize AI through services, its ecosystem integration, and hardware upgrades. Its revaluation reflects confidence in the sustainability of its earnings rather than a bet on potential AI gains."

For a company long considered a laggard in the AI race, this achievement embodies Apple's efforts to cement its place among the leaders in this sector, and it could influence how the final months of CEO Tim Cook's leadership are evaluated.

Cook is set to hand over the reins to John Ternus, a hardware veteran, in September.

Last month, the company launched a long-awaited comprehensive update to its Siri voice assistant, betting that the upgraded assistant will help it narrow the gap with major tech companies and startups in the AI race.

Some analysts see Apple as holding a true AI treasure in the form of personal data stored on each iPhone, which could make Siri's answers more useful and give the assistant greater capabilities.

But the challenge is that this data is locked within operating systems for privacy, meaning the company will need to find a way to tap into its value.

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