American technology giant Apple has regained its status as the world's most valuable company, overtaking chipmaker Nvidia. This happened amid a sharp drop in Nvidia's securities of nearly 5% during trading on Monday, which reduced the chipmaker's market capitalization to $4.77 trillion, while Apple's valuation exceeded the $5 trillion mark. Business Insider reports, according to UNN.
Details
The nearly 5% drop in Nvidia's shares continued a period of high turbulence for both the company itself and the entire semiconductor sector. Over the past week alone, the value of the company's securities has fallen by approximately 3%.
Due to the recent fluctuations, Nvidia has begun to significantly lag behind the overall market dynamics: since the beginning of the year, its shares have shown growth of only 5%, while the benchmark S&P 500 index has gained 8% over the same period. Against this backdrop, Apple is showing a confident leap - its securities have grown by almost 24% since the start of the year, and during the session on Monday they added another 1%.
Key pressure factors on Nvidia
Analysts highlight two main factors that triggered the latest wave of sell-offs in the technology giant's securities: the threat of a new "DeepSeek moment" and concerns about "circular financing."
In the first case, it is about the fact that
markets reacted extremely nervously to the announcement of a new artificial intelligence model from a Chinese startup. Investors fear that the emergence of cheaper and more efficient alternative AI solutions from China could reduce global demand for Nvidia's ultra-expensive processors.
An additional trigger was reports of Nvidia's negotiations to provide $250 billion in financing for the construction of OpenAI data centers. Fears about the "circular deal" scheme (when a chip manufacturer finances a client, who then uses those same funds to buy its products) have resurfaced in the market, as well as concerns over excessive capital expenditures (CAPEX) in the industry.
Situation in the sector and the state of the "Magnificent Seven"
2026 has proven difficult for most representatives of the so-called "Magnificent Seven." Besides Nvidia, shares of giants such as Tesla, Microsoft, and Meta have shown negative dynamics since the beginning of the year.
The hardware market for AI and related funds has suffered the strongest blow. Thus, the industry exchange-traded fund iShares Semiconductor ETF has fallen by 14% over the past month.
And the thematic fund Roundhill Memory ETF, which was one of the most popular projects since the COVID-19 pandemic, collapsed by 29% over the month.
Experts note that a large-scale rotation of capital is taking place in the market: investors are massively exiting overheated "momentum stocks" and redirecting funds into more stable consumer assets.
Why Apple is winning
Apple's current growth is indicative, as in recent years the company has faced harsh criticism from analysts for lacking aggressive growth in the field of artificial intelligence compared to competitors.
However, at a time when investor interest purely in AI trendiness began to decline, it is Apple's moderate strategy, focused on the end consumer and stable cash flows, that has made its shares the main "safe haven" for stock market players.
Recall
In October 2025, Apple's market value reached $4 trillion. This growth was driven by demand for the iPhone lineup and new products.