Apple passes Nvidia in market cap as Anthropic IPO nears

Apple (AAPL) has overtaken Nvidia (NVDA) as the world's most valuable public company, a shift driven by Nvidia's recent stock decline and strong demand for Apple's new foldable smartphone. Yahoo Finance Executive Editor Brian Sozzi reported the transition occurred during Thursday trading, ending Nvidia's tenure at the top of the market cap rankings.

The reversal highlights a disconnect in the tech sector, where Nvidia shares fell approximately 7.5% over the past month while Apple stock rose about 3%. Sozzi attributed Nvidia's slump to a broader cooling of the AI trade, noting that investors are questioning the sustainability of AI infrastructure spending. In contrast, Apple is benefiting from its status as a hardware seller rather than an AI infrastructure provider. The company's foldable device, described by Sozzi as a "duo" with a hinge, has generated strong lines for sales globally despite mixed reviews, supporting near-term revenue and profit expectations.

Simultaneously, investors are focused on Anthropic (ANTH.PVT), which is expected to file its S-1 prospectus imminently. Sozzi stated that a source familiar with the matter indicated the company is in its quiet period, suggesting the filing could occur later today or within the next few weeks. A public listing is anticipated for mid-to-late November. Early backers such as Salesforce co-founder Mark Benioff and Ashton Kutcher’s VC firm are positioned to realize significant gains from the offering.

Jared Carmel, Managing Partner at Manhattan Venture Partners, discussed the valuation dynamics during an interview with Sozzi. Carmel suggested that while a $2 trillion valuation is not unreasonable given Anthropic’s revenue growth from billions to tens of billions, the IPO should be priced to sell to ensure long-term shareholder support. He noted that the market is pricing Anthropic as an infrastructure layer for business operations rather than a simple chatbot. Carmel also compared the situation to SpaceX, noting that early investors in such companies often hold stakes for years, but warned that if early Anthropic investors sell aggressively post-IPO, it could impact the stock in early next year.

The broader market context includes concerns over AI capital expenditure. Tesla (TSLA) cut its 2026 Capex guidance by $5 billion to $20 billion, a move Sozzi noted is being misinterpreted by some investors as a signal of weak AI demand. However, Tesla is not a hyperscaler with cloud services to sell, and the cut is tied more closely to challenges in producing its Optimus humanoid robots. Sozzi expects Microsoft, Amazon, and Google to tighten Capex plans when they report earnings next week, similar to Meta's recent guidance, rather than cut spending outright.

SpaceX (SPCX) is also making moves that affect the telecom sector. Reports indicate SpaceX is eyeing a deal for 80,000 cell towers, a potential major play against incumbents like AT&T (T), Verizon (VZ), and T-Mobile (TMUS). This development has weighed on telecom stocks, with AT&T trading at a lower P/E multiple than the S&P 500 tech sector. Carmel described the potential integration of Tesla and SpaceX as part of a larger ecosystem involving compute, power, and data centers, suggesting these entities may operate as a single conglomerate in the future.