Nvidia shares fell below $200 on Monday as selling pressure returned across the semiconductor sector, reducing the company’s market value and allowing Apple to reclaim the position of the world’s most valuable listed company.

NVDA stock traded near $196.69 after dropping almost 5% during the session. The decline brought Nvidia’s market capitalization to about $4.80 trillion. Apple shares moved in the opposite direction, rising above $335 and lifting the company’s market value to roughly $4.93 trillion. Because market value is based on share price multiplied by shares outstanding, relatively small moves in mega-cap stocks can quickly change the ranking of the world’s largest listed companies.

The shift came as investors reduced exposure to major semiconductor companies, including chip designers and memory manufacturers, amid renewed concerns about the scale and profitability of artificial intelligence-related spending.

NVDA Stock Falls With Broader Chip Selloff

Nvidia’s latest decline occurred during a wider selloff across the semiconductor industry. Companies tied to processors, memory, data-center hardware and AI infrastructure came under pressure as investors reassessed the pace of spending tied to the AI investment cycle.

Nvidia had previously rebounded above $215 after moving close to the $200 level. That recovery did not hold, and the latest move below $200 indicated that short-term selling pressure remained strong during the session.

The decline also reflected growing caution toward companies that have benefited from demand for data centers, advanced processors and networking systems. Investors are seeking clearer evidence that large AI infrastructure spending can translate into consistent profits for the companies funding and supplying those projects. The issue matters for Nvidia because its AI accelerators sit near the center of that spending cycle, while many of its largest customers are still building out capacity for future AI services.

Reported $250 Billion OpenAI Guarantee Draws Attention

Nvidia is reportedly discussing a financing guarantee worth about $250 billion for an OpenAI data-center project. The guarantee could help OpenAI obtain improved borrowing terms for a planned facility in southern Ohio.

SoftBank’s SB Energy is developing the 10-gigawatt site. The full project could require more than $500 billion in total spending, including chips and other computing equipment. The first portion of the center may begin operating in 2028.

A potential agreement could support future demand for Nvidia processors if the project moves forward. At the same time, it has raised questions about how AI companies will finance large-scale infrastructure plans and whether chip suppliers may increasingly help support projects that buy their products.

Such arrangements could expose NVDA stock not only to normal product demand cycles, but also to financing risks connected to large AI infrastructure customers. They also make project timelines, financing terms and customer balance-sheet strength important factors for investors tracking the durability of AI infrastructure demand.

Lower-Cost Chinese AI Models Add Pressure

Competition from China has added another concern for companies linked to AI computing demand. Moonshot AI’s Kimi K3 is an open-weight model designed to compete with major American systems at a lower cost.

Chinese developers have focused on building capable AI models that use fewer resources. Open-weight releases also allow developers to download, modify and deploy the technology more freely than closed systems.

Lower-cost models do not immediately eliminate the need for Nvidia processors. However, improved efficiency could slow the growth rate of computing demand if companies are able to achieve similar results with fewer chips. That makes model efficiency an important variable for the AI hardware market, alongside raw demand for larger data centers.

Apple Moves Back Into First Place

Apple’s market value rose to about $4.93 trillion, compared with Nvidia’s roughly $4.80 trillion, enabling Apple to overtake Nvidia as the world’s most valuable listed company.

Nvidia remains a leading supplier of AI accelerators, and NVDA stock continues to be tied closely to demand for AI infrastructure. The company also faces pressure from Chinese AI models, custom chips and the high cost of data-center expansion.

Investors are likely to keep watching whether large AI projects secure financing, whether data-center buildouts stay on schedule and whether customers can turn AI spending into durable revenue. Those factors will help shape sentiment toward Nvidia and the broader semiconductor sector after Monday’s pullback.