Apple Overtakes Nvidia as AI Spending Fears Grow

On Friday, Apple overtook Nvidia to become the largest public company in the world. Apple's stock fell 1.2%. Even so, the company's overall valuation rose to $5.03 trillion. Nvidia's stock, meanwhile, dropped 4.2%, bringing its valuation down to $4.93 trillion. Investors sold Nvidia shares and bought Apple shares. They see Apple as the safer bet right now, given growing worries about spending on artificial intelligence (AI).

This is a sign that investors are more worried about the cost of running data centers than about how accurate AI models are. There is no evidence that AI models are becoming less accurate or cheaper to run. Companies building the physical infrastructure for AI agents may feel the most pressure if swings like this one continue.