Business Insider Nvidia has been hit by volatility as investors rethink parts of the AI thesis, while Apple is the top stock in the Magnificent Seven this year.
Nvidiatumbled from its perch as the world's most valuable company on Monday.- The position was claimed by Apple, which rallied as Nvidia was hit by fresh bout of selling.
- The iPhone maker has quietly been the top performer in the Magnificent Seven cohort year to date.
Nvidia stock dropped on Monday, costing the chipmaker its position as the world's most valuable company, swapping positions with Apple.
Monday's nearly 5% decline in Nvidia shares extends a volatile stretch for the company and chip makers broadly. The stock is down about 3% in a week, and its recent struggles have it caused it to lag the year to date gain in the S&P 500. The benchmark index is up 8% this year compared to 5% for Nvidia.
The most recent selling in chips was sparked earlier this month by a new AI model from a Chinese startup that investors fears as a new "DeepSeek moment."
Monday's decline followed a report that Nvidia is in talks to provide $250 billion of financing for OpenAI's data centers, reviving fears of circular dealmaking and huge capex spending, which investors have become increasingly wary of.
Nvidia and Apple swapped positions in Monday's session as Nvidia stock fell to a market cap to about $4.77 trillion. Apple stock, meanwhile, rose 1%, hitting a market cap of nearly $5 trillion.
The Magnificent Seven has had a tough time in 2026, but Apple has quietly pulled ahead of the pack. The iPhone-maker's stock is up nearly 24% in 2026. Three of the stocks in the Mag 7 — Tesla, Microsoft, and Meta — are down year to date. Nvidia shares have gained about 6% this year.
But more important than a gain in Apple stock has been the global AI hardware rout that's rattled the market in recent weeks. Nvidia has lost some ground in the fight for world's most valuable company due to jitters about the AI trade and a rotation away from momentum stocks that's hammered shares of the hottest stocks like memory makers and other chip firms.
The iShares Semiconductor ETF is down 14% in the last month. The Roundhill Memory ETF, which was the hottest thematic fund launched since COVID, has cratered 29% in a month.
Apple's recent rise is also notable as the company has been punished by criticized by investors and analysts in recent years due to a relative lack of AI-focused growth strategies. Now, as the winds shift, it may be benefitting from investors' rotation into less crowded, consumer-facing trades.
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