Following a sharp decline in its stock price, Nvidia has relinquished its position as the largest American company by market capitalization back to Apple.
This decline occurred amidst a general weakness in AI chip stocks, as reported by the Wall Street Journal.
All stocks in the PHLX Semiconductor Index closed below their 50-day moving average for the first time since April 2025, with the index itself ending down 2.2 percent.
Investor concerns were fueled by a Wall Street Journal article suggesting Nvidia may provide a $250 billion guarantee for a major OpenAI data center project, highlighting worries over the company’s heavy customer commitments.
Meanwhile, Chinese memory chip maker CXMT had a strong market debut, and Apple advocated for the inclusion of Chinese chips in certain products to the Trump administration.
Analysts pointed out that any reduction in capital spending negatively impacts chip makers, and the increasing competition from Chinese firms has become a significant concern.
The Nasdaq composite fell by 0.2 percent, while the S&P 500 inched up less than 0.1 percent and the Dow industrials gained 0.5 percent.
Global oil prices dropped below $89 a barrel.
Nvidia, which held the top spot among U.S. companies during the peak of the AI boom, returned it to Apple in this session.
Overall, broader markets showed minimal movement as investors shifted their focus to other sectors.
The selloff underscored a growing caution surrounding AI-related spending and potential supply chain changes involving Chinese technology.
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Generated Image: Midjourney
