American tech giant Apple has regained the title of the world's most valuable company by market capitalization, surpassing chipmaker Nvidia, which had held the title since May 2025.

Apple's shares rose 0.4% in Wall Street trading on Friday, bringing its market value to $4.9 trillion, while Nvidia's shares fell 3.7%, pushing its market cap down to $4.8 trillion.

Investors shift away from AI companies and chipmakers.

The change in rankings was driven by investors reassessing AI prospects and spreading its gains across more companies, as they moved away from other parts of the tech sector, especially those with heavy AI spending and chipmakers whose stocks had soared with the influx of cash, amid fears that their rally may have gone too far.

In contrast, Apple's stock has enjoyed a strong rally, rising 21% from its June low and up 23% year-to-date, making it the best performer among the "Magnificent Seven" stocks. The iPhone maker also recently received long-awaited government approval to launch Apple Intelligence services in China, which is expected to support growth.

Nvidia's stock fell on Friday following reports of a new AI model from Chinese startup Moonshot that competes with the best models from US-based OpenAI and Anthropic, both of which use Nvidia chips.

Meanwhile, HSBC upgraded Apple's stock from "hold" to "buy," stating that the company is in a good position in the market.