Microsoft briefly overtakes Nvidia as world's second-most valuable company as chipmaker's shares plunge

Microsoft briefly overtook Nvidia on Tuesday (November 10) to become the world's second-most valuable listed company, the first time since June 2025, Reuters reported. Nvidia's shares fell more than 6% during the session and closed down 5.47%; Microsoft's shares also fell, but by less, leaving its market value briefly ahead at about $4.03 trillion against Nvidia's roughly $4.02 trillion. Apple remains the world's most valuable company.

A $1.84 trillion lead erased in five weeks

As recently as October 6, Nvidia's market value led Microsoft's by $1.84 trillion; five weeks later, that advantage had vanished. Nvidia regained second place by early Tuesday afternoon, but the battle for second remains unsettled. Reuters reported that Nvidia was on course to lose roughly $470 billion in market value across Monday and Tuesday.

AI-spending doubts and the Huang affair weigh together

Market analysts point to two drivers of Nvidia's slide: investors are questioning the long-term returns on massive artificial intelligence infrastructure spending, and the fallout continues from the affair involving chief executive Jensen Huang. US authorities are examining whether Huang was targeted in a foreign intelligence effort tied to an alleged relationship with a Chinese businesswoman; Beijing has dismissed the espionage claims as unsubstantiated. Huang admitted over the weekend to the affair, and the episode has already prompted shareholder lawsuits. This site has previously reported that Nvidia's board is investigating the matter.

Microsoft speeds up its own chips; Anthropic's new tool also pressures it

Microsoft reported quarterly revenue of $92.3 billion, up 19% year on year. The company plans a substantially larger deployment of its home-grown Maia chips from 2027, reducing its dependence on Nvidia for some AI tasks. Microsoft's shares also came under pressure on Tuesday, which Barron's tied to Anthropic's launch of Claude Sheets, an AI spreadsheet tool described as an Excel competitor.

Nvidia reports earnings on November 17; markets wait

Nvidia reports earnings on November 17, with forecast quarterly revenue of $108 billion. Prediction market Polymarket puts Apple's chance of finishing 2026 on top at about 71%, Nvidia's at about 27% and Microsoft's at about 1%. Sources: Reuters; Benzinga; Barron's; Yahoo Finance.