JAKARTA - Apple is once again the world's most valuable public company. The iPhone manufacturer overtook Nvidia when selling pressure hit stocks that had enjoyed a surge in investment in artificial intelligence or AI.
Anadolu Agency, quoted Saturday, July 18, reported that Apple's market capitalization, or the total value of all the company's shares, reached around 4.9 trillion US dollars in intraday trading on Friday. That value is slightly higher than Nvidia's record of 4.84 trillion US dollars.
The change of position occurred when Nvidia's shares weakened again. Selling action also hit semiconductor companies and a number of other stocks that have benefited the most from the rapid spending on AI.
Investors are starting to question whether the hundreds of billions of US dollars being poured into AI infrastructure and data centers can generate profits quickly enough. These concerns come at a time when technology companies' valuations are already at high levels.
Nvidia has lost about $1 trillion in market value since its share price peaked in mid-May. As of early July, the chip company's shares were down about 16 percent.
The weakness also spread to the semiconductor sector. The Philadelphia Semiconductor Index fell about 11.5 percent in a week, even though a number of major chip manufacturers recorded strong financial performance. The momentum index, which tracks the shares of leading stocks that had previously risen sharply, also fell 13 percent since June.
Geopolitical risks and rising energy prices also weighed on technology stocks. This condition strengthens concerns that inflation will remain high and interest rates will remain at high levels for longer.
Apple's shares are relatively more resilient than Nvidia. The performance brings Apple back to the lead in terms of valuation as investor interest begins to shift away from some of the chipmakers most closely associated with the AI spending boom.
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