Microsoft overtook Nvidia as the world’s second-most valuable listed company on Tuesday, the first time it has held the number two spot since June 2025, as the chipmaker’s shares fell sharply amid the deepening crisis around its chief executive, Jensen Huang.
Nvidia fell more than 6% to about $167 a share, while Microsoft slipped a more modest 0.4% to $543.25, according to Reuters. The moves left Microsoft narrowly ahead at roughly $4.03 trillion in market value, with Apple still the world’s most valuable company at about $5.1 trillion.
The slide extends a brutal run for Nvidia. Its shares have fallen about 17.5% in five trading days and have shed roughly $1.7 trillion in market value since early October, as investors reassess both the outlook for artificial intelligence spending and the leadership turmoil at the world’s leading AI chipmaker.
Nvidia’s board announced an independent investigation on Sunday into reports that Mr Huang was targeted by a foreign intelligence operation, after the New York Times reported that US authorities had concluded Alice Huang — an unrelated former executive of Singapore-based chip buyer Megaspeed — was a Chinese intelligence asset. Mr Huang has told employees he was unfaithful to his wife, without giving details, and the board has said it has no reason to believe US national security or Nvidia’s secrets were compromised. Neither Mr Huang nor Ms Huang has been charged with any crime, and the underlying allegations have not been proved.
A shareholder filed a proposed class action on Monday accusing Nvidia and Mr Huang of misleading investors about the affair and the risks it posed to the business. The suit, filed minutes after the market closed, followed a 4.27% fall in the shares that day. Three Republican chairs of House committees have also asked Mr Huang to attend a closed-door briefing on 18 November, with a response due by Wednesday.
Microsoft’s lead did not last the session. Its own shares came under pressure later in the day, falling more than 3% by midday in New York and putting Nvidia back in front. Nvidia reports quarterly results on 17 November, its first scheduled public test since the probe was announced.
Sources: Reuters, “Microsoft tops Nvidia’s market cap for first time since June 2025”, https://www.reuters.com/business/microsoft-top-nvidias-market-cap-first-time-since-june-2025-2026-11-10/ ; Fast Company, “Nvidia stock has plunged 17.5% in 5 days. A new lawsuit adds to the chaos”, https://www.fastcompany.com/91639436/nvidia-stock-has-plunged-17-5-in-5-days-a-new-lawsuit-adds-to-the-chaos
