Microsoft overtook Nvidia as the world’s second-most valuable public company on Nov. 10, 2026, the first time it had done so since June 2025, according to Reuters. Microsoft shares were down 0.4% at $543.25 during the session; Nvidia shares had fallen more than 6% to roughly $167.11.
An AI Valuation Built on Expectations
Nvidia’s valuation reflects expectations of sustained AI-chip demand, expectations one session of doubt can quickly reprice.
Reuters cited uncertainty about the AI outlook as one factor weighing on Nvidia. The company’s valuation is closely tied to expectations that cloud providers will keep buying AI chips at the current pace. That dependency leaves the stock acutely sensitive to any sign that returns on those investments might disappoint.
A Board Investigation Adds to the Pressure
Governance questions landed two days before Tuesday’s sell-off.
On Nov. 8, Nvidia’s board announced an independent investigation. A committee of independent directors, backed by outside independent counsel, is overseeing the review.
The Associated Press reported the investigation followed allegations that CEO Jensen Huang had been involved with a Chinese business executive whom U.S. intelligence officials reportedly considered an information-gathering asset. Those allegations remain under investigation and have not been confirmed.
Nvidia’s board statement was precise in its limits. The board said it has no reason to believe U.S. national security or Nvidia secrets were compromised, expressed confidence in Huang and his leadership team, and confirmed that Huang is cooperating with the review.
What the Rankings Actually Tell You
Mega-cap market positions can shift on sentiment alone.
A move of more than 6% was enough to swap the second-place ranking in a single session. At this scale, investor sentiment can reset positions that took years to establish.
What to Watch Next
AI spending trends, earnings guidance, and the investigation outcome will determine whether this reversal holds.
Three variables will shape where Nvidia’s stock settles: AI spending commitments from major cloud providers, upcoming earnings guidance, and the outcome of the board’s independent investigation. The ranking between Microsoft and Nvidia remains subject to rapid change as those questions develop.
