Microsoft Overtakes Nvidia as World's Second-Most Valuable Company in AI Rout

Microsoft has overtaken Nvidia as the world's second-most valuable company, passing the chipmaker on Tuesday, November 10, 2026, as Nvidia shares plunged more than 6 percent on deepening uncertainty over the outlook for artificial intelligence spending and an investigation into whether chief executive Jensen Huang was targeted by a foreign intelligence effort.

It is the first time Microsoft has held the higher value since June 2025. Microsoft was worth just over $4.03 trillion, against about $4.02 trillion for Nvidia, with Apple still first at roughly $5.07 trillion.

Key Points

• Microsoft passed Nvidia as the world's second-most valuable company on Tuesday, November 10, 2026, the first time it has held the higher value since June 2025.
• Microsoft shares fell 0.4 percent to $543.25, while Nvidia lost more than 6 percent to about $167.11.
• Microsoft's market value stood at just over $4.03 trillion, against about $4.02 trillion for Nvidia, while Apple remains first at roughly $5.07 trillion.
• Nvidia has lost more than $400 billion in market value since the weekend revelations about chief executive Jensen Huang.
• The lead changed hands during the session, as Microsoft's own shares fell more than 3 percent by midday, leaving the ranking tight and volatile.

What Happened

Microsoft moved ahead during Tuesday's trading, Reuters reported, as Nvidia lost more than 6 percent to around $167.11, while Microsoft shares were down 0.4 percent at $543.25.

The gap was wafer-thin: Microsoft led by only around $10 billion, a margin that could vanish in a single morning of trading. The lead also swapped hands during the day, as Microsoft's shares fell more than 3 percent by midday before recovering some ground.

Nvidia's fall extends a slide that began over the weekend, when revelations about Huang's relationship with a woman US intelligence agencies suspect of links to Chinese intelligence began to weigh on the stock. Nvidia's board has opened an independent investigation, shareholders filed a class-action lawsuit on Monday, November 9, and President Donald Trump has said the FBI is investigating. Nvidia has now lost more than $400 billion in market value since the weekend.

Background: From AI Darling to Under Pressure

Nvidia spent much of the past two years as the market's favourite way to bet on artificial intelligence. But the crown has been changing hands in recent weeks. On Friday, October 30, Apple passed Nvidia as the world's most valuable company, closing at $5.03 trillion against $4.93 trillion for the chipmaker.

The wider technology sell-off has been building for days. The Nasdaq 100 entered technical correction territory on Tuesday, November 3, down 10 percent from its record highs, as investors questioned how quickly the hundreds of billions of dollars pouring into artificial intelligence infrastructure will pay off. Chip stocks have stayed under pressure since.

Microsoft has been spending heavily on the same build-out. It priced a $25 billion bond sale on November 4, its first since 2017, to fund its artificial intelligence expansion, and it has forecast capital spending of $170 billion to $175 billion for 2026. Its cloud business, Azure, grew 48 percent in the September quarter.

Microsoft Overtakes Nvidia: What the $4 Trillion Flip Means

The change at number two is symbolic as much as financial. Both companies are still worth more than $4 trillion, and the gap between them is barely a rounding error at this scale. But the direction of travel matters: Nvidia, the purest play on the artificial intelligence boom, is the one falling, while Microsoft, with a far broader business spanning software, cloud computing and services, is holding up better.

That pattern has repeated across the market in recent days. Investors have not abandoned artificial intelligence, but they have started to ask harder questions about which companies can turn enormous spending into profit, and when. A chipmaker tied to a single product cycle is more exposed to that doubt than a company selling software and cloud services to millions of customers.

The ranking also underlines how quickly fortunes can reverse at the top. A single strong earnings report, or a single bad one, could flip the order again, and Nvidia is due to report its own results later in November.

Reactions and Analysis

The sell-off reflects two worries hitting Nvidia at once. The first is the broader doubt about artificial intelligence spending that has dragged down technology shares for days. The second is specific to Nvidia: the investigation into Huang, the board probe, the shareholder lawsuit and the FBI's involvement have added uncertainty no other big technology company is carrying right now.

For Microsoft, the day was less a triumph than a relative escape. Its shares also fell, by more than 3 percent at midday, before recovering to close down just 0.4 percent. Its diversified revenue and its position as a supplier of cloud services have cushioned it so far.

Why It Matters

The flip matters because Nvidia has been the bellwether for the entire artificial intelligence trade. When its shares fall 6 percent in a day, the shock spreads across chipmakers, data centre builders and the funds that hold them.

It also matters for the balance of power in technology. Apple, Microsoft and Nvidia now sit in a tight group above $4 trillion, with Apple clearly first at roughly $5.07 trillion. The contest for second place is effectively a contest over which vision of artificial intelligence investors trust most.

What Happens Next

The next test for Nvidia comes with its earnings report later in November, when investors will look for evidence that demand for its chips remains strong. Huang has also been asked to brief Congress on November 18 about the espionage claims.

For Microsoft, the question is whether it can hold the number two spot. With only about $10 billion separating the two companies, the ranking could change again on any given day, and much will depend on whether the technology sell-off deepens or stabilises in the coming sessions.

Frequently Asked Questions

What happened between Microsoft and Nvidia? Microsoft overtook Nvidia as the world's second-most valuable company on Tuesday, November 10, 2026, the first time it has held the higher market value since June 2025.

How much did Nvidia's shares fall? Nvidia lost more than 6 percent on Tuesday to about $167.11, and has lost more than $400 billion in market value since the weekend revelations about chief executive Jensen Huang.

How much is each company worth? Microsoft was worth just over $4.03 trillion, against about $4.02 trillion for Nvidia. Apple remains the world's most valuable company at roughly $5.07 trillion.

Why is Nvidia falling? Investors are uncertain about the outlook for artificial intelligence spending, and Nvidia is also under pressure from the investigation into whether its chief executive was targeted by a foreign intelligence effort.

Who is the world's most valuable company? Apple, at roughly $5.07 trillion, ahead of Microsoft at just over $4.03 trillion and Nvidia at about $4.02 trillion.

Read more: Apple overtakes Nvidia as world's most valuable company at $5.03 trillion; Global markets slide as Nasdaq enters correction and Australia raises rates to 4.85%; Nvidia shareholders sue Jensen Huang as FBI probes alleged China spy affair.