Apple briefly reclaimed the world's largest market capitalization from Nvidia on May 17 (local time), as investor focus shifted from AI semiconductors to AI platforms and services. Apple's market cap reached approximately $4.9001 trillion after its stock rose 0.14%, while Nvidia's fell to approximately $4.9120 trillion following a 2.2% decline. The intraday ranking change marked Apple's first return to the top position since last April, ending Nvidia's reign of over a year that began in May 2025. The shift followed the release of a high-performance AI model by Chinese startup Moonshot, which triggered skepticism about continued AI infrastructure investment expansion and prompted selling across AI semiconductor stocks.
Apple Reclaims Market Cap Lead on May 17
Apple reclaimed the world's largest market capitalization position intraday on May 17 (local time) for the first time since last April. The company's stock rose 0.14% to reach a market cap of approximately $4.9001 trillion, while Nvidia declined 2.2% to approximately $4.9120 trillion. Nvidia had maintained the top position for over a year starting in May 2025. The ranking change reflected a shift in market perspective on AI investment, with capital moving from AI semiconductor companies that benefited from generative AI momentum toward platform companies capable of generating actual revenue through AI services.
Chinese AI Startup Moonshot Releases Kimi K3 Model
Nvidia's stock declined sharply on May 17 (local time) after Chinese AI startup Moonshot unveiled its open-source AI model Kimi K3, which matches the performance of top-tier models from OpenAI and Anthropic. The release of the competitive Chinese AI model raised concerns among investors that AI infrastructure investment expansion may have reached its peak, triggering widespread selling across the AI semiconductor sector. Tony Medos, Chief Investment Officer at BRI Wealth Management, stated that Apple was previously criticized for lagging in AI competition due to its limited involvement in developing proprietary AI models, but the sentiment has now changed.
Apple Intelligence Receives China Approval
Apple received approval to launch Apple Intelligence in China, serving as a positive catalyst for the stock. Market participants expect the AI service rollout in China to drive iPhone sales growth and increase service revenue. Apple's stock rose 21% from its low point last June and gained 23% year-to-date, recording the highest increase among the Magnificent Seven technology stocks. During the same period, the Nasdaq 100 index rose 12% and the S&P 500 index gained 8.6%.
HSBC Upgrades Apple Investment Rating to Buy
HSBC recently upgraded Apple's investment rating from Hold to Buy. HSBC analyst Nicola Cote-Colisson stated that Apple stands at an operational turning point, positioned advantageously to be free from excessive AI capital expenditure controversies while leveraging its installed base of 2.5 billion active devices to expand the newly revamped Apple Intelligence. Apple unveiled a significantly revamped voice assistant Siri last month to strengthen its AI competitiveness. Some analysts evaluate that the vast personal data accumulated on iPhones could become Apple's most powerful AI asset, though how Apple will utilize this data while maintaining privacy as a core value remains a challenge to address.
Philadelphia Semiconductor Index Enters Bear Market Territory
The Philadelphia Semiconductor Index (SOX) fell 20.2% from its all-time high as of the May 17 (local time) close, entering a technical bear market. The semiconductor sector, which had surged due to AI investment enthusiasm, entered a correction phase as investors reassessed the sustainability of AI infrastructure investment expansion following the emergence of high-performance models from Chinese AI startups. However, market analysts suggest that rather than cooling AI investment enthusiasm, a rotation is occurring where funds concentrated in certain stocks like Nvidia are dispersing across the broader AI ecosystem including memory semiconductors and platform companies. Benjamin Hall Segal, Vice President of Alpha Research at Marco Advisors, stated that investor interest is expanding beyond the existing Magnificent Seven to a more diverse range of AI beneficiary companies. Memory semiconductor company Micron surpassed a $1 trillion market cap in May as the importance of High Bandwidth Memory (HBM) in AI infrastructure gained prominence, and SK Hynix, which listed on the U.S. Nasdaq earlier this month, has emerged as a new focus for investors.
FAQ
What happened to Apple's market cap on May 17 (local time)?
Apple briefly reclaimed the world's largest market capitalization position from Nvidia on May 17 (local time). Apple's market cap reached approximately $4.9001 trillion after its stock rose 0.14%, while Nvidia's fell to approximately $4.9120 trillion following a 2.2% decline. This marked Apple's first return to the top spot since last April.
Why did Nvidia's stock decline on May 17 (local time)?
Nvidia's stock fell 2.2% on May 17 (local time) after Chinese AI startup Moonshot released its Kimi K3 open-source AI model, which matches the performance of top-tier models from OpenAI and Anthropic. The release raised investor concerns that AI infrastructure investment expansion may have peaked, triggering selling across the AI semiconductor sector.
What recent developments supported Apple's stock performance?
Apple received approval to launch Apple Intelligence in China, which market participants expect will drive iPhone sales and service revenue growth. HSBC upgraded Apple's investment rating from Hold to Buy, citing the company's advantageous position to leverage its 2.5 billion active device base while avoiding excessive AI capital expenditure burdens.
