Apple is within striking distance of overtaking Nvidia as the world’s most valuable company, a milestone that would reshuffle the ranks of tech heavyweights as investors reassess the outlook for AI.

Apple was last valued at $4.90 trillion as its shares rose marginally in premarket trading on Friday, while Nvidia was roughly at the same level, following a 2.4 per cent decline.

If Apple overtakes Nvidia, it would reclaim the top spot for the first time since April last year. The close race shows that investors are broadening their focus beyond the obvious beneficiaries of the AI boom, such as Nvidia, which has been at the helm for nearly a year.

“Apple was seen as a laggard in the AI race because it wasn’t spending to develop models, but now sentiment has changed,” said Toni Meadows, head of investment at BRI Wealth Management.

“Apple is less exposed to capex intensity and better positioned to monetise AI via services, ecosystem lock-in, and hardware upgrades. The re-rating reflects confidence in earnings durability rather than speculative AI upside.”

For a company that was often seen trailing in the AI race, the narrowing gap with Nvidia reflects Apple’s efforts to establish itself more firmly among the sector’s leading players, and could shape how CEO Tim Cook’s final months at the helm are viewed.

Cook is preparing to cede his role to hardware veteran John Ternus in September.

Last month, the company rolled out a long-delayed overhaul of Siri, betting the upgraded assistant would help close the gap with Big Tech rivals and new-age startups in the crucial AI race.

Some analysts say Apple is sitting on an AI gold mine in the form of the personal data that lives on every iPhone. The data could make Siri’s answers more useful and the assistant more capable.

The challenge is that such data is locked away in operating systems in the name of privacy and the company would have to find a way to unlock its value.

AI spending lifts new winners

Nvidia became the first company in the world to surpass a $5tr market valuation in October, a landmark that propelled it into a rarefied territory that was far beyond the reach of its rivals.

Even if Nvidia is superseded by Apple, it would not necessarily signal a lasting change in the companies’ relative standing. The chipmaker remains a major beneficiary of AI-related spending, and its graphics processors are powering much of the generative AI frenzy.

Nvidia could also reclaim the top spot if sentiment shifts.

Besides, Apple is in a delicate position itself, having raised prices to offset rising costs — a strategy that could hurt demand.

“I don’t see any meaningful distinction should Nvidia lose its crown. It’s likely to be a significant participant in whatever happens going forward,” said Benjamin Hall, vice president, alpha research at Segal Marco Advisors.

However, the AI enthusiasm has spread to other corners of the semiconductor industry. The bigger winners this year have been memory chipmakers such as Micron, which crossed $1tr in market value in May as investors embraced the significance of memory chips in AI infrastructure.

South Korea’s SK Hynix also listed on the Nasdaq earlier this month, adding another player to the race for investor attention.

“The new entrants to the market could spread out the focus away from the pure Magnificent Seven names into a wider number of names,” Hall said.

The eye-watering chips rally ran into turbulence in July as investors reassessed the sustainability of the artificial intelligence trade, knocking the Philadelphia SE Semiconductor index down almost 19pc from its all-time highs.

Despite the steep fall, the index has performed better than Nvidia so far this year.