Nvidia’s stock took a hit on Monday, causing the company to lose its title as the world’s most valuable firm, as it switched places with Apple. Nvidia shares fell by 5%, continuing a shaky period for the company and the chip industry as a whole. Recent concerns stem from a new AI model developed by a Chinese startup, which investors are viewing as a possible “DeepSeek moment.”
This drop followed news that Nvidia is negotiating a $250 billion financing deal for OpenAI’s data centers. This has stirred worries about excessive spending and complex financial arrangements, making investors uneasy.
With the decline, Nvidia’s market cap fell to about $4.77 trillion, while Apple saw a stock increase of 2%, raising its market cap to approximately $5 trillion.
The Magnificent Seven—comprising major tech companies—has faced challenges this year. However, Apple has managed to rise, with its stock increasing nearly 24% in 2026. In contrast, three of these stocks—Tesla, Microsoft, and Meta—have seen declines. Nvidia’s shares have gained about 6% this year.
The recent struggles in the AI hardware market have caused some unease among investors. Nvidia’s decline in status as the most valuable company is partly due to growing concerns over AI investments and a shift away from momentum stocks, which has affected others in the tech sector, including memory companies.
In the past month, the iShares Semiconductor ETF dropped 14%, and the Roundhill Memory ETF, once a hot investment, plummeted by 29%.
Interestingly, Apple’s recent success comes after facing criticism for not having significant AI growth strategies. As investors pivot towards less crowded, consumer-oriented trades, Apple appears to be gaining an advantage.
