Apple Inc has once again become the world’s most valuable company, overtaking Nvidia after the chipmaker’s shares fell sharply on Friday, according to a Bloomberg report.Nvidia’s stock dropped 3.7%, reducing its market value to about $4.8 trillion. Apple, meanwhile, gained 0.4%, pushing its valuation to around $4.9 trillion and reclaiming the top spot for the first time since Nvidia overtook it in May 2025.According to Bloomberg, investors are shifting away from companies that have benefited the most from the artificial intelligence (AI) boom and are moving towards firms seen as better positioned for long-term growth. Apple has emerged as one of the biggest beneficiaries of this trend.Apple’s shares have surged 21% since hitting a low in June and are now up 23% for the year, making it the best-performing stock among the “Magnificent Seven” technology giants. During the same period, the Nasdaq 100 Index has gained 12%, while the S&P 500 Index has risen 8.6%.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.”