WORLDTECHApple Retakes Most Valuable Company Title From NVIDIA After Friday Sell-Off
Apple has reclaimed the position of the world's most valuable company from NVIDIA after a sell-off in technology stocks on Friday, according to TechPowerUp. The shift came as investors reacted to a run of disappointing earnings reports across the sector.
Market values after Friday's trading
Apple shares slipped 1.2% on October 30, leaving the company with a market capitalisation of $5.03 trillion. NVIDIA fell 4.2% over the same session and closed at $4.93 trillion, which was enough to hand Apple the top spot once again.
The change is the first time Apple has stood ahead of NVIDIA since it briefly overtook the chipmaker in late July.
Earnings disappointments drove the sell-off
Friday's decline followed a series of technology earnings reports that failed to satisfy investors. Alphabet and Meta reported first, with Intel and Amazon following. Intel's stock fell roughly 29% on Friday after a weak outlook for the fourth quarter, a drop that CNBC described as the company's worst day since the 1970s.
TechPowerUp reports that the broader concern is whether heavy spending on AI data centres, the facilities packed with computers that run online services, will generate returns. NVIDIA is the main supplier of AI GPUs, the chips built to carry out many calculations at once for graphics and artificial intelligence, so its revenue is closely tied to those budgets.
Companies behind the shift
NVIDIA is a semiconductor company based in Santa Clara whose products and services include graphics processing units. Apple is a software and consumer electronics company based in Cupertino.
Open questions
- Will the spending on AI data centres continue at its current pace?
- Will NVIDIA regain the top position in the coming sessions?