Apple reclaims world's largest company title from Nvidia

Apple has regained its title as the world's most valuable company, overtaking Nvidia amid a downturn in AI-related stocks. The iPhone maker's shares surged to a record high of $337 in early New York trading on Friday, boosting its market capitalization to $4.9 trillion.

In contrast, Nvidia, which had previously held the top spot, saw its shares drop by nearly five percent to below $200, reducing its market value to $4.8 trillion. The two tech giants engaged in a close competition throughout the trading day, with Nvidia narrowing its losses.

This market volatility comes as investors begin to re-evaluate the future outlook for the artificial intelligence sector. Semiconductor stocks, including Nvidia's, experienced an extraordinary rally earlier, driven by massive investments in AI-enabling firms. Nvidia had become the world's first company to reach a $5 trillion market valuation in October.

However, concerns are growing among investors that the recent surge may have been excessive. This sentiment has led to a shift in funds away from chip stocks and major AI financiers. Nvidia also faces challenges from new AI models emerging from China, which are seen as significant competitors to products from OpenAI and Anthropic.