Apple overtook Nvidia and became the world's most valuable company again
This happened amid investor concerns over massive spending on AI
Investors began to view the iPhone maker as a safer asset after weak reports from Intel and Amazon intensified doubts about the prospects for investment in artificial intelligence. Apple, meanwhile, has largely avoided such investments.
Spending on AI led to negative free cash flow at Alphabet and Amazon. Companies are increasingly borrowing in the debt market, while higher interest rates are making loans more expensive.
The Nasdaq 100 index fell 6.7% in October, posting its worst monthly performance since March 2025. Shares of CoreWeave and Nebius Group, which sell computing capacity for AI, lost more than 30% over the month, while Intel shares fell by more than 45%. Investors are concerned that major investments in AI infrastructure have not yet led to noticeable revenue growth for companies.
