Apple reclaimed the world's #1 market capitalization position on the 27th (local time) after approximately 1 year and 3 months. Apple's stock rose 1.17% to close at $336.91, bringing its market cap to $4.948 trillion, while NVIDIA fell approximately 5% and dropped to #2. The shift occurred as AI-related stocks experienced increased volatility, with Apple's relatively cautious approach to AI investment now viewed as a stabilizing factor for investors seeking safer positioning in the technology sector.
Apple Market Cap Reaches $4.948 Trillion on the 27th
On the 27th (local time), Apple stock listed on NASDAQ closed at $336.91, up 1.17% from the previous trading day. Based on the regular trading session close, Apple's market capitalization rose to $4.948 trillion (approximately 7,260 trillion won), securing the world's #1 market cap position. NVIDIA, which showed weakness from the opening, fell approximately 5% and dropped to #2.
This marks Apple's first return to the #1 market cap position since April of last year. Apple had previously surrendered the top position to Microsoft, which was backed by OpenAI, and Microsoft subsequently handed the throne to NVIDIA after approximately two months.
NVIDIA Market Cap Falls $1 Trillion from May Peak
NVIDIA emerged as the leading AI stock and successively broke through market cap milestones of $4 trillion in July of last year and $5 trillion in October. Driven by explosive demand for AI semiconductors, NVIDIA's market cap surged to a record high of $5.7 trillion on May 14 this year. However, as concerns about 'AI peak-out' spread through the market, the stock price declined, with current market cap down approximately $1 trillion from its peak.
Big Tech AI Capital Expenditures Projected at $724 Billion This Year
Stocks of Big Tech companies that aggressively pursued AI infrastructure investment are experiencing volatility. Despite raising astronomical funds through corporate bond issuances and capital increases, concerns have spread that capital recovery relative to investment may be delayed. The capital expenditures (CAPEX) of Google parent company Alphabet, Microsoft, Amazon, and Meta are projected to reach $724 billion this year and $950 billion next year.
Analysts Credit Apple's Conservative AI Investment Strategy
Unlike AI stocks whose upward momentum has broken, Apple's stock price shows stable upward movement recently, moving opposite to AI-related stocks. Apple received evaluations that it was the slowest among major Big Tech companies in AI transformation. However, assessments now indicate that slower investment has become a strength due to healthy financial condition. Additionally, evaluations of voice assistant 'Siri' included in the operating system beta version are positive.
Jay Woods, Chief Market Strategist at Freedom Capital Markets, told Yahoo Finance, "Apple was once criticized for not investing more in AI, but thanks to that, it was able to avoid several traps related to capital expenditures." Daniel Newman, CEO of Futurum Group, explained to The New York Times, "People see AI-related stocks as highly volatile and think of Apple as similar to holding an index. Apple is considered a kind of safe asset."
FAQ
What market cap did Apple reach on the 27th (local time)?
Apple's market capitalization reached $4.948 trillion (approximately 7,260 trillion won) based on the regular trading session close on the 27th (local time), securing the world's #1 position.
How much has NVIDIA's market cap fallen from its peak?
NVIDIA's market cap peaked at $5.7 trillion on May 14 this year and has since declined by approximately $1 trillion from that peak.
What are Big Tech companies' projected AI capital expenditures?
The capital expenditures of Alphabet, Microsoft, Amazon, and Meta are projected to reach $724 billion this year and $950 billion next year.
