The Chinese AI model that rattled Nvidia and boosted Apple’s $4.9 trillion rise

A new AI model out of China may have just cost Nvidia its crown as the world’s most valuable company. Reports that Chinese startup Moonshot has built a model capable of rivalling top systems from OpenAI and Anthropic — both of which run on Nvidia’s chips — put fresh pressure on Nvidia’s shares, which fell 3.7% on Friday and cut its market value to about $4.8 trillion, according to a Bloomberg report.

The move opened the door for Apple, whose 0.4% gain that day pushed its valuation to roughly $4.9 trillion, enough to overtake Nvidia and reclaim the title of world’s most valuable company for the first time since Nvidia took it in May 2025.

Bloomberg described the moment as part of a wider pattern: investors pulling back from stocks that rode the AI boom hardest and shifting toward companies seen as safer long-term holds. Apple’s recent run reflects that shift clearly — its shares are up 21% since a June low and 23% higher for the year, the best performance among the ‘Magnificent Seven’ technology stocks, ahead of the Nasdaq 100 Index’s 12% gain and the S&P 500 Index’s 8.6% gain over the same stretch.

Apple has had help beyond the Nvidia news. Long-awaited government approval to launch Apple Intelligence in China is expected to strengthen the company’s position in a major market, adding to the momentum behind its stock.

Apple also received a fresh vote of confidence from HSBC this week, which upgraded its shares to ‘buy’ from ‘hold’. Analyst Nicolas Cote-Colisson wrote that Apple ‘is now at an operational turning point’, adding that it can ‘stay away from the (too) high capex debate’ while leaning on its 2.5 billion installed device base as its revamped Apple Intelligence features roll out.

Apple Park/CC-BY-SA 3.0/by Arne Müseler