Apple Hits Record High as NVIDIA's Valuation Shrinks

On September 21, 2026, Apple stock hit a new record, climbing intraday to nearly $345 before closing around $339.

NVIDIA shares are also near all-time highs, but the company's forward valuation multiple has fallen considerably from levels seen earlier this year.

What's Really Driving Apple's Record-Breaking Rally

The forward price-to-earnings ratio compares a stock's current price with analysts' projections of future earnings. It provides a measure of how expensive a company appears relative to expected growth. This concept is key to understanding the current divergence between Apple and NVIDIA.

Renewed confidence in Apple's hardware and services ecosystem is driving the rally. Demand for the latest iPhones, including the iPhone 18 Pro and the forthcoming foldable iPhone Duo, has led to longer delivery times and higher upgrade-cycle expectations.

Enhancements to on-device Siri AI and a seamless CEO change have also bolstered investor confidence that Apple can profit from AI without the heavy capital outlays typical of hyperscalers.

The stock has climbed more than 36% over the trailing 12 months, according to TradingView data, pushing its market cap above $5 trillion.

Apple's services revenue and high-margin software are still expanding its cash-generation capability, offering investors a more consistent growth narrative compared to many AI-focused peers.

Why Has NVIDIA's Valuation Compressed So Much?

On paper, NVIDIA's fundamentals are still outstanding. The company's latest quarterly revenue surpassed $96 billion, more than double the prior year, largely fueled by data-center sales.

However, NVIDIA's forward P/E has dropped significantly from above 25x earlier this year, despite the stock trading near record highs.

Market participants seem to be discounting risks such as a possible deceleration in AI capex, competition from custom chips, memory cost pressures, and the high expectations already built into current projections.

This compression has taken place even though NVIDIA shares are still well above last year's levels and have posted significant gains in 2026. The stock has not matched the rapid growth in its earnings, resulting in a valuation gap that is unusual for the company in recent times.

The contrast reveals two distinct investor perspectives. Apple is benefiting from its consistent, high-quality growth and capital efficiency. NVIDIA, on the other hand, faces scrutiny over whether its exceptional growth rate is sustainable, even though current growth remains strong.

Whether NVIDIA's lower multiple is a buying chance or a cautionary signal will probably hinge on forthcoming hyperscaler earnings and their capital expenditure guidance in the coming months.