Apple has reclaimed the title of the world's most valuable company from Nvidia after a sharp swing in the two stocks over the past three months. Nvidia still expects heavy hyperscaler spending to keep flowing its way, but its rich valuation leaves the stock exposed if that spending ever slows.
Apple has reclaimed the title of the world's most valuable company by market capitalization from Nvidia. Nvidia's stock has dropped 8% over the past three months, while Apple's stock has gained 27% over the same span.
Nvidia had held the top spot for most of 2025, riding an AI boom that turned it from a niche gaming-chip maker into the market's biggest name. But AI chip stocks have been plummeting recently as investors price in worries about how long heavy AI spending can keep growing.
Even so, Nvidia's biggest customers keep raising their AI budgets. Alphabet and Amazon each plan to spend roughly $200 billion on AI infrastructure in 2026, and both companies build some of their own AI chips yet still turn to Nvidia to power the cloud platforms they sell to clients.
Nvidia CEO Jensen Huang has said total AI spending could reach $1 trillion next year and $3 trillion to $4 trillion by the end of the decade. He also expects Nvidia's Blackwell and Rubin chip lines to generate $1 trillion in revenue from 2025 through 2027 alone.
Nvidia's revenue growth is accelerating right now, but the stock's valuation assumes that pace holds. Nvidia trades at 19 times trailing-12-month sales on a price-to-sales basis, leaving little room for the AI spending cycle to slow.
That multiple is why investors should temper their near-term expectations for Nvidia stock even as the long-run AI spending story stays intact.
Source: Motley Fool
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