Apple briefly reclaimed the title of the world's most valuable company from Nvidia on Friday, with its market capitalization reaching $4.92 trillion in early trading, surpassing Nvidia's $4.86 trillion. While Nvidia later regained the top spot, ending the day with a $5.02 trillion market cap compared to Apple's $4.89 trillion, the gap between the two tech giants has significantly narrowed, roughly $130 billion.
Apple's stock (AAPL) surged 1.76% to a record high of $333.26, indicating strong bullish momentum. This resurgence follows eight consecutive quarters of beating EPS estimates, a recent announcement of a $100 billion share buyback, and a $30 billion deal with Broadcom aimed at strengthening its silicon roadmap. Apple's valuation stands at a forward multiple closer to 32x.
In contrast, Nvidia's stock (NVDA) experienced a 2.40% decline, settling at $207.40. Despite the recent dip, Nvidia trades at a forward earnings multiple of approximately 22x with a PEG ratio of 0.6, and is guiding for $91 billion in quarterly revenue. Its gross margins are notably higher at around 75% compared to Apple's roughly 49%. Nvidia's latest quarterly revenue hit $81.6 billion, an 85.2% year-over-year increase, driven by hypergrowth in its data center networking sector, which saw a 199% rise.
The upcoming earnings reports will be critical in determining which company holds the top spot. Apple is scheduled to report its earnings on July 30, offering a month-long window to influence market narrative. Analysts will be closely watching Apple's Services growth, Greater China revenue, and any early indicators for the iPhone 18. Nvidia's earnings report is not due until August 26, leaving it more exposed to market sentiment shifts during this period.
The current momentum sees Apple gaining more than 7% over the past week, while Nvidia has dropped almost 4% over the past month due to sustained profit-taking by investors. Despite this, the underlying demand for Nvidia's AI chips, particularly the Blackwell 300 platform, remains robust, as evidenced by TSMC's raised guidance for AI chip orders. The competition for the most valuable company title is intensifying, with both companies leveraging different growth engines: Apple with strong iPhone 17 demand and a booming Services unit ($30.98 billion last quarter), and Nvidia with immense demand for AI infrastructure from hyperscalers.
