Nvidia Slides More Than 6%, Putting Microsoft Back in Second Place Globally by Market Value
Key Facts
Microsoft overtook Nvidia to become the world’s second-largest company by market value during trading on Tuesday, November 10, after Nvidia shares plunged more than 6% to about $167.11. In the same session, Microsoft shares fell 0.4% to $543.25, according to Reuters, while Nvidia’s drop was large enough to change the companies’ ranking during trading. Reuters linked the decline to growing uncertainty about the AI outlook and an investigation into whether the company’s chief executive, Jensen Huang, had been targeted in a foreign intelligence effort. The prices cited by the agency reflect intraday moves and are not closing prices. The Associated Press reported that Nvidia was the single largest contributor to pressure on the S&P 500, with its shares down 6.3% that day.
The decline followed a similar move in the previous session, when Nvidia shares fell 4.2% on November 9 and closed at their lowest level since April 7, while major U.S. indexes rose, according to a Reuters report. Nvidia was also the only declining stock among Philadelphia Semiconductor Index constituents on Monday, despite the index rising 6.9% after falling more than 12% the previous week. EL7 data showed Nvidia closing at $178.67 on November 9, compared with $545.18 for Microsoft. Those prices provide context for the following session but do not describe the November 10 close. On October 30, Reuters reported that more than $2 trillion in market value was at risk of evaporating from the Nasdaq 100 during the month, after the index had fallen 5.8% through that date as investors scrutinized returns on major technology companies’ AI spending.
On November 8, Nvidia’s board announced an independent investigation following reports that Huang may have been the target of a foreign intelligence effort. The board said the investigation would be overseen by independent directors and supported by independent outside legal counsel, adding that it “has no reason to believe that national security or Nvidia’s secrets have been compromised.” Huang said he supported the review and would cooperate with it, while the board expressed confidence in him and the leadership team. The board said it would provide further updates as appropriate. Its statement did not say that Huang would remain in his position.
In a related development, The Information reported that Huang’s relationship with a Chinese businesswoman suspected of spying for Beijing facilitated shipments of at least $7.5 billion worth of Nvidia chips to Chinese companies. Reuters cited the report, quoting two people who know the woman, and said it could not independently verify the information. The alleged shipment value therefore remained attributed to the news report and was not presented as an established fact. Chinese Foreign Ministry spokesman Guo Jiakun denied the allegations on November 9, calling them “baseless, nothing but distortion and slander against China.” The allegations place the company at the center of broader political and commercial scrutiny over access to advanced chips in the Chinese market.
The market concerns come as Nvidia continues to post strong business growth. Revenue reached $96.2 billion in the second quarter of fiscal 2027, up 18% from the previous quarter and 106% from the same period a year earlier. The company forecast revenue of $108 billion, plus or minus 2%, for the third quarter of the fiscal year. Nvidia said its forecast assumes no data center computing revenue from China. The company is scheduled to hold a call to discuss its third-quarter results on November 17 at 2 p.m. Pacific time; the quarter ended on October 25. The call is the next milestone for tracking the company’s results and outlook, as investor questions about AI demand intersect with the investigation and reports of shipments to China.