Microsoft Passes Nvidia in Market Value for the First Time Since June 2025

Nvidia was down more than 6% at about $167.11, while Microsoft slipped 0.4% to around $543.25, Reuters reported. Reuters put Nvidia's slide down to uncertainty about the outlook for AI and to an investigation into whether Huang was the target of a foreign intelligence effort. Versions of the Reuters report differed on whether the move made Microsoft the world's most valuable company or its second most valuable.

Nvidia has been the stock market's main way to bet on AI spending, so its fall below a software company is a measure of how quickly investor confidence has shifted this week. The chipmaker closed more than 4% lower on Monday, CNBC reported, while rival chip designers AMD and Broadcom rose sharply that day before giving back some gains on Tuesday.

The pressure follows a New York Times report on October 29 that US officials had concluded Alice Huang, an executive at Nvidia customer Megaspeed, was a Chinese intelligence asset. On November 8, Huang told staff in an email that he had been unfaithful to his wife and had fallen short as chief executive, according to CNBC. President Donald Trump said on Monday that the FBI was investigating and that he thought Huang "will be in good shape." The Rosen Law Firm has filed a class-action suit against Nvidia and Huang in federal court in San Jose, alleging false or misleading statements about the affair and the company's relationship with Megaspeed.

Dan Ives of Yorkville Ives & Co told CNBC he puts the chance of Huang being removed as chief executive at roughly 15%. He expects the board's investigation to take four to six weeks and to weigh on the stock until more is known.

Nvidia is due to report quarterly results on November 17. Citi and Wells Fargo cut their price targets on the stock this week but kept buy-equivalent ratings.