Apple briefly touches $5 trillion market cap, overtakes Nvidia amid AI capex debate

Apple on Tuesday briefly hit a market capitalization of $5 trillion for the first time, a day after surpassing Nvidia to become the most valuable publicly traded company. Shares reached a high of $342.89 before slipping. Apple stock is up 25% this year, outpacing other megacap peers.

The rally reflects a broader market debate about AI strategy. While hyperscalers (Alphabet, Amazon, Meta, Microsoft) are collectively spending hundreds of billions on capex for AI buildouts, Apple has kept capital expenditures low and is licensing AI technology from Google and cloud infrastructure partners. Investors have grown concerned that aggressive spenders are raising record debt and moving toward cash flow negativity without clear paths to strong returns on AI infrastructure.

The jockeying between Apple and Nvidia highlights the divergence in market narratives. Nvidia, whose GPUs power most large AI models, became the first company to hit $5 trillion in October 2025 but has lagged this year, gaining only 6%. Apple's approach of minimal capex and device leasing—the company announced a new Upgrade program allowing iPhone and product leasing—has attracted flows.

For investors and architects: the market is revaluing risk as capex-heavy AI strategies face scrutiny. Apple's triumph signals that conservative AI adoption strategies may outperform hyperscaler infrastructure plays in the current cycle, though this narrative is still in flux.