Apple Briefly Passes Nvidia in Market Value Friday, Then Nvidia Retakes Lead at About $5.1 Trillion Each

Since Apple last closed ahead of Nvidia on July 27, the gap between the world's two most valuable companies has gone from about $190 billion in Apple's favor to a rounding error. On Friday, Oct. 23, Apple briefly pulled ahead during the session, with both companies valued around $5.1 trillion. Nvidia moved back in front soon after.

It was close. In early trading Apple shares rose 0.84% to $351.13, putting its market value at about $5.12 trillion against Nvidia's $5.10 trillion. By the 4:00 p.m. ET close, Apple was at $347.73, down 0.14% on the day and under Thursday's record close of $348.22. After hours, at 5:07 p.m. ET, it was quoted at $347.40.

How the gap closed

Thursday did most of the work. The Nasdaq Composite fell 2.60%, or 694 points, to 26,008.86, its worst day since early June. The Philadelphia Semiconductor Index dropped 6.7%, its worst session since June 23, and four major chip and memory stocks each lost more than 8%.

Nvidia fell $9.76, or 4.40%, to $212.21, leaving it at $5.124 trillion. Apple rose 1.23% to its record close of $5.082 trillion. That left a $42 billion gap going into Friday.

Michael O'Rourke of Jones Trading called it "the most widespread selling of the AI trade we have seen all year." He said that when a whole sector sells off together, the mood around AI is the likely cause of Nvidia's drop, more than anything specific to the company.

Meta added fuel. Its third-quarter results showed negative free cash flow for the first time since 2012 because of aggressive AI spending, and the company said it will issue a new batch of stock to fund the buildout.

Nvidia CEO Jensen Huang said Thursday that demand from neocloud companies is "off the charts" but that capital is scarce. Demand turns into chip orders only when buyers can pay for them.

The numbers behind the race

Over the past month Nvidia is down about 7.3% and Apple is up about 2.5%. For the year, Apple is up 28.44% and Nvidia 14.05%. Nvidia had held the top spot for more than two years.

Alphabet at $3.965 trillion, Microsoft at $3.869 trillion and Amazon at $2.701 trillion are far behind. This is a two-company race.

The iPhone Duo

Apple's first foldable went on sale Friday at $1,999, with the top-storage model above $3,000. Preorders sold out within minutes of opening Oct. 16. Nearly every configuration shows a Jan. 25 delivery date, which could push some revenue into later quarters. Apple has reportedly raised its production targets.

Reviews of the Duo have been tough. Dan Ives, a partner at Yorkville Ives, argued in a note that roughly 375 million iPhones have gone more than four years without an upgrade, and that this pool of buyers is deep enough to keep Duo demand high well into 2027.

Jeff Kilburg, founder and CEO of KKM Financial, argues that Apple's earnings could push it over the top. He also disclosed that Apple is one of the top five holdings in his firm's Essential 40 ETF. He points to services, which generated about $109 billion in fiscal 2025. Services carry gross margins near 75% against roughly 37% for hardware, so they account for more than 40% of Apple's gross profit on about a quarter of its revenue.

Valuation is the counterweight

The bullish case comes with a price tag. Apple trades at about 45 times earnings at a record price. Nvidia trades at 43 times earnings after revenue grew 105.8% last quarter. 24/7 Wall St. wrote that a weak Apple report "would likely end the chase."

The Duo's strong preorders do not guarantee a strong quarter either. The delivery dates stretching into late January mean much of that demand will not show up in the numbers Apple reports on Nov. 2.

What comes next

Apple reports fiscal fourth-quarter results on Nov. 2, the first earnings call for CEO John Ternus. Revenue expectations are near $113 billion. In July, Apple guided to 9% to 11% revenue growth and warned that supply would get tighter. Those are estimates and guidance, not results.

Nvidia is scheduled to report around Nov. 18. At the Friday close, the gap between the two was small enough that a move of about 1% in either stock could reverse the order.