Apple is closing in on Nvidia for the title of the world's largest company, with a market value of $5.05 trillion against Nvidia's $5.10 trillion. Strong demand for the new iPhone Duo and upcoming earnings on Nov. 2 may push Apple over the top, according to CNBC Pro contributor Jeff Kilburg.
Apple is set to leapfrog Nvidia and reclaim the top spot in the market cap ranking, Kilburg writes in a CNBC Pro column. On Friday, Apple traded at a market value of $5.05 trillion, compared with $5.10 trillion for Nvidia.
Back in July, Apple's market value briefly surpassed Nvidia before falling back below.
October moves favor Apple
Apple shares are up 4% in October, while concerns about the AI financing environment drag Nvidia down 7% for the month. Enthusiasm around the iPhone Duo launch has helped push Apple shares to an all-time high this week as the rest of the tech sector suffers.
The iPhone Duo hit stores Friday and starts at $1,999 and climbs above $3,000 for the highest-storage model. Preorders sold out almost immediately after opening Oct. 16, with some delivery estimates stretching into January, and Apple has reportedly raised its production targets.
Earnings on Nov. 2 put services in focus
Apple reports earnings on Nov. 2. Revenue expectations are around $113 billion, following Apple's earlier guidance for 9% to 11% year-over-year growth.
Kilburg says he will watch what management says about iPhone demand, but he sees Apple's services business as a possible catalyst. Services generated about $109 billion in revenue in fiscal 2025, about a quarter of Apple's business. However, services carry gross margins of approximately 75%, compared with roughly 37% for hardware, according to the column. As a result, services contribute more than 40% of Apple's total gross profit.
In his view, that, with Apple leading the Magnificent Seven and closing in on Nvidia's valuation, the market may be starting to recognize the strength of its broader business.
Source: CNBC
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