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Microsoft has overtaken US chipmaker Nvidia to become the world’s second most valuable company after a sharp decline in Nvidia’s share price. It is the first time since June 2023 that the Windows maker has surpassed the chip giant.
Nvidia shares fell more than 6 per cent to $167.11 during trading on Tuesday (November 10), while Microsoft’s shares slipped 0.4 per cent to $543.25.
As a result, Microsoft’s market capitalisation rose to around $4.03 trillion, while Nvidia’s valuation dropped to approximately $4.02 trillion.
Reasons behind the market decline
The sell-off was driven by growing uncertainty over the future growth prospects of the artificial intelligence (AI) sector, which has raised concerns among investors.
Investor anxiety was further fuelled by reports of an investigation into whether Nvidia Chief Executive Officer Jensen Huang had been under surveillance or targeted by a foreign intelligence agency.
The development added to pressure on Nvidia shares amid broader volatility in technology stocks.
Apple remains the world’s most valuable company, with a market capitalisation of more than $5.06 trillion.
