Apple Briefly Overtakes Nvidia in Market Value, Then Slips Back at Close

Synopsis

Apple's stock briefly surged to become the world's most valuable listed company Friday, Oct. 23, with shares reaching a record $351.73 on the day of the debut of its new foldable iPhone Duo. By the end the race was won by Nvidia, who finished approximately $20 billion ahead. The episode is a shift in the tide from stock's related to AI with both companies close to $5 trillion and investors keeping track of Apple's November 2 results.

The maker of the iPhone broke free from the company behind the artificial-intelligence boom for a couple of hours on Friday. At the end of the time the order was reversed.

On the day of the release of the foldable iPhone Duo in stores, Apple's stock price spiked to a record high of $351.73, pushing its value to approximately $5.1 trillion, just past the value of Nvidia.

Nvidia took the lead back by the close: Apple slid 0.14 per cent to $347.73, a value of $5.074 trillion, while Nvidia fell 0.59 per cent to $210.96, worth $5.094 trillion. But 24/7 Wall St. estimated Nvidia is about $20 billion ahead, as a result.

The correction in the headline

The leadership of the two market caps has swung back and forth over the years. Friday was the fifth time Apple has been No. 1 on Investing.com. It pointed out that Nvidia is down about 11 per cent from its record close on October 6, while Apple is up about 4.3 per cent since then. On October 6, investing Nvidia's value was at the approximate level of $5.78 trillion.

The Duo’s debut

The iPhone Duo, Apple's first foldable, entered the market in over 70 countries and regions for $1,999. The preorders hit their mark quickly, with deliveries hitting late January and eBay listings of the resale going for more than $4,000, according to 24/7 Wall St. Apple even set up restrictions on purchases, with walk-in sales being prohibited on its launch day and online orders capped at two per person in China.

Analysts expect demand to be “very strong.” With about 375 million iPhones not upgraded for more than four years, "Duo demand for another few years will stay high into 2027," Dan Ives wrote in a note cited by The News. IDC estimates that Apple will account for 44 per cent of the foldable smartphone market by value this year.

Two different businesses

Valuations are based on various engines. Apple's revenue in the latest quarter was $109.42 billion, an increase of 16.4 per cent, while Nvidia's rose to $96.22 billion, a rise of 105.8 per cent, 24/7 Wall St reported. It estimates the value of Apple at roughly 45 times earnings, and Nvidia at roughly 42 times earnings.

Limited Duo supply could cap Apple's December quarter revenue and push it into 2027: Supply is a constraint: Apple may be constrained by limited Duo supply, which could cap the company's December quarter revenue.

Investing.com wrote that it was a “one-session market-cap leader can be a noise.” The broader spread of the stocks related to artificial intelligence was the focus here.

Investing.com described the rotation as a shift in investing sentiment, away from the “top of the market” in the AI sector. It went on to say that, “Nvidia is not a broken company, we just need to see if growth can justify its valuation of over $5 trillion.”

What comes next

According to 24/7 Wall Street, investors will be watching for any sign from Duo when they will begin selling, margins to withstand the pressure from memory prices, and any China commentary from Apple on November 2, when earnings are expected to be reported. Nvidia will now be watched to see if growth will continue to justify its valuation since a correction in the month of October.