Microsoft Overtakes Nvidia as No. 2 Most Valuable Firm: What Drove the Flip
Microsoft passed Nvidia as the world's second-most valuable company on Tuesday as Nvidia shares plunged over 6%, erasing more than $400 billion in two days.
Image: Wikimedia Commons / Anderseidesvik
NEW YORK, November 10, 2026 — Microsoft overtook Nvidia as the world's second-most valuable listed company on Tuesday, after Nvidia shares plunged more than 6% on doubts over the outlook for artificial intelligence spending and an investigation into whether chief executive Jensen Huang was targeted by a foreign intelligence operation. Microsoft slipped 0.4% to $543.25, valuing it above $4.03 trillion, while Nvidia fell to about $167.11, worth roughly $4.02 trillion, according to market data from the Nasdaq.
It is the first time Microsoft has been worth more than Nvidia since June 2025, and it caps a two-day rout that has erased more than $400 billion from Nvidia's market value since the revelations about Huang emerged over the weekend. Apple remains the world's most valuable company.
Key Takeaways
- Microsoft passed Nvidia as the world's second-most valuable company on Tuesday: more than $4.03 trillion against about $4.02 trillion.
- Nvidia shares fell more than 6% to about $167.11; Microsoft slipped 0.4% to $543.25.
- The two-day slide has wiped more than $400 billion from Nvidia's value.
- The sell-off reflects doubts about AI spending returns and the board probe into Huang.
Why Did Nvidia Shares Fall More Than 6% on Tuesday?
Two forces hit the stock at once. The first is doubt on Wall Street about whether the enormous sums being poured into artificial intelligence infrastructure will ever pay off. Nvidia, the dominant supplier of the chips that power AI systems, is the main barometer of that bet, so any wobble in confidence lands hardest on its shares. The Nasdaq fell more than 1% on Tuesday, but Nvidia's drop was far steeper.
The second force is the investigation into Huang. Nvidia's board has opened an independent review after Huang acknowledged an intimate relationship with a businesswoman whom United States intelligence officials assessed as gathering information for China. Nvidia had already fallen more than 4% on Monday.
How Much Market Value Has Nvidia Lost in Two Days?
The two-day slide has taken more than $400 billion off Nvidia's market value. The scale of the reversal is clear in the numbers.
| Company | Tuesday close | Change on Tuesday | Market value | Change over past month |
|---|---|---|---|---|
| Microsoft | $543.25 | -0.4% | More than $4.03 trillion | +1.89% |
| Nvidia | About $167.11 | More than -6% | About $4.02 trillion | About -23.5% |
The shares are down about 23.5% over the past month, while Microsoft has gained about 1.9% over the same period. Microsoft's own shares have also fallen in the wider technology sell-off, but the damage has been far lighter.
What the Microsoft-Nvidia Flip Means for Investors and the AI Rally
The flip matters because it is a verdict on the AI trade rather than on one company. For two years Nvidia's rise tracked the belief that AI hardware spending would keep compounding; that belief is now being tested. Google has unveiled two new systems in its eighth-generation chip lineup, the TPU 8tx and TPU 8i Max, in a direct challenge to Nvidia's dominance of AI accelerators. Taiwan Semiconductor Manufacturing Company, Nvidia's main chip manufacturer, plans to invest up to $1 billion across Anthropic and OpenAI.
Hotter-than-expected inflation has also revived expectations of a Federal Reserve rate rise in December. The October consumer price index rose 0.4% in the month, with core prices up 0.3% for a third straight month, according to the U.S. Bureau of Labor Statistics.
Frequently Asked Questions
Why did Microsoft overtake Nvidia as the second-most valuable company?
Nvidia shares fell more than 6% on Tuesday to about $167.11, while Microsoft slipped only 0.4% to $543.25. That left Microsoft above $4.03 trillion and Nvidia at about $4.02 trillion, the first time Microsoft has ranked higher since June 2025.
How much did Nvidia stock fall on Tuesday, November 10, 2026?
Nvidia fell more than 6% on Tuesday, a day after dropping more than 4% on Monday. The two-day slide has wiped more than $400 billion from the company's market value.
What is Nvidia's board investigating about Jensen Huang?
The board is investigating whether Huang was the target of a foreign intelligence effort. Huang has acknowledged an intimate relationship with a businesswoman whom United States intelligence officials assessed as gathering information for China.
When does Nvidia report earnings next?
Nvidia reports third-quarter results on November 17, 2026.
Nvidia reports third-quarter results on November 17, and the Federal Reserve holds its next policy meeting on December 8-9. Nvidia's board has not said when its review of Huang will end.
