Apple's $510 Billion Market Cap Drop Opens Door For Nvidia To Reclaim World's Largest Company Title Amid iPhone Maker's China Struggles

Apple Inc. AAPL has seen a staggering $510 billion decline in market capitalization over the past three weeks, paving the way for Nvidia Corp. NVDA to reclaim its position as the world’s largest company, according to analysis from The Kobeissi Letter.

What Happened: The market shift stems from Apple’s significant challenges in the Chinese smartphone market, where annual iPhone shipments dropped 17% in 2024—the largest annual sales decline since 2016. Apple has now fallen behind local competitors Vivo and Huawei in China’s competitive smartphone landscape.

Investor Warren Buffett, long a proponent of Apple, recently reduced Berkshire Hathaway‘s Apple stake by 25%, maintaining 300 million shares. Despite this reduction, Apple remains a critical 26% of Berkshire’s portfolio.

Apple stock, $AAPL, has erased $510 billion in market cap over the last 3 weeks.

Since December 26th, the stock has declined ~14% and the company's worth has fallen to $3.35 trillion.

As a result, Nvidia, $NVDA, has again surpassed Apple as the world's largest company.

This… pic.twitter.com/pGmLxLxCsG
— The Kobeissi Letter (@KobeissiLetter) January 22, 2025

JPMorgan analyst Samik Chatterjee attributes Apple’s struggles to multiple factors, including currency headwinds, limited AI feature adoption, and challenging market conditions in China. The analyst expects Apple’s first-quarter earnings to fall slightly below consensus estimates, with potential guidance disappointments.

Why It Matters: Needham analyst Laura Martin remains cautiously optimistic, maintaining a $260 price target and highlighting Apple’s potential in services, wearables, and emerging technologies like Vision Pro. However, Martin acknowledges the company’s heavy dependence on iPhone sales.

The evolving tech landscape presents significant challenges for Apple, with local Chinese brands and AI-powered competitors increasingly threatening its market dominance. As Nvidia capitalizes on AI technological advancements, Apple faces critical questions about innovation and global market strategy, according to The Kobeissi.

Price Action: Apple’s stock closed at $223.83 on Wednesday, gaining 0.53% during the regular session. In after-hours trading, the stock dipped 0.29%. Over the past 52 weeks, Apple has traded between a low of $164.08 and a high of $260.09, according to data from Benzinga Pro.

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