Tech giant Apple regained its crown as the world’s most valuable company, edging past chipmaker Nvidia. Apple’s market value climbed to about $4.94 trillion, topping Nvidia’s roughly $4.83 trillion.
Investors have increasingly viewed Apple’s restrained capital spending as a strength, especially compared with rivals committing tens of billions of dollars to new artificial intelligence (AI) infrastructure.
Apple shares close at record high
While companies such as Alphabet and Tesla have stepped up spending to support AI data centers, robotaxis and robotics, Apple has cut capital expenditures over the past three quarters even as it continues to expand its Apple Intelligence platform.
As of 6:35 GMT, Apple shares were trading 0.12 percent higher at $337.31 in after-hours trading after closing at a record high on Monday, while Nvidia fell 0.19 percent to $196.13 after dipping nearly 5 percent in the previous session.
Apple shares have surged more than 22 percent year-to-date, outperforming the “Magnificent Seven” as investors increasingly see the company’s disciplined approach to AI spending as a competitive advantage rather than a drawback.
Apple has maintained a notably restrained approach to capital spending, setting it apart from rivals investing heavily in AI infrastructure. Alphabet recently raised its capital expenditure forecast to expand its AI capabilities, while Tesla increased spending to support its robotaxi and robotics ambitions.
Both companies saw their shares decline following their earnings reports. Year to date, Alphabet stock is up around 4 percent, while Tesla has fallen roughly 30 percent.
Investors eye key Magnificent Seven earnings
Investors are now turning their attention to earnings from Microsoft, Amazon and Meta later this week, with all three companies expected to outline further increases in AI investment.
Apple is scheduled to report results on Thursday after markets close, with investors closely watching for updates on its AI strategy and evidence that it can expand its Apple Intelligence features without significantly increasing capital spending or eroding operating margins.
The earnings release will also mark Tim Cook’s final quarterly results as CEO before he steps down on September 1 to become executive chairman, handing leadership to longtime hardware chief John Ternus.
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