Microsoft reclaimed the world’s second‑largest market‑capitalisation on Tuesday, overtaking Nvidia for the first time since June 2025. The shift was short‑lived; by midday the tech giant’s shares had slipped more than 3%, erasing an estimated $130 billion in value. The brief lead stemmed from Nvidia’s sharp decline rather than any new strength at Microsoft, according to BeInCrypto.

How the rankings flipped

At 11:30 a.m. ET, Microsoft was trading at $543.25, already down 0.4%, when it passed Nvidia, whose shares were near $167. Within minutes, Nvidia’s price fell to $166.83, pushing its market value to roughly $4.03 trillion, while Microsoft’s valuation rose to about $3.92 trillion, according to CompaniesMarketCap data. By 12:45 p.m. ET, Microsoft’s stock had dropped to $527.45, a 3.25% decline, according to Yahoo Finance, restoring Nvidia’s lead.

Drivers behind Nvidia’s slide

Nvidia’s plunge, exceeding 6%, was linked to a board‑level review probing whether CEO Jensen Huang had been targeted by foreign intelligence agencies. The company has not disclosed a timeline for concluding the investigation, BeInCrypto reported. The uncertainty added pressure to Nvidia’s shares, which have been volatile since early October when they fell from around $243 to their current level, a decline of about 31% per Barchart data.

Microsoft’s own challenges

Microsoft’s stock dip occurred despite the launch of a new AI‑driven spreadsheet tool that competes with Excel, coinciding with Anthropic’s IPO roadshow. Microsoft is a backer of a $26 billion private placement tied to Anthropic’s offering, and the AI startup has trimmed its valuation target to $1.02 trillion from earlier estimates of $1.5 trillion. Swissquote senior analyst Ipek Ozkardeskaya, cited by Fox Business, said the market is reassessing Anthropic’s worth amid a tougher AI environment. These factors, combined with broader macro pressures—October consumer‑price growth of 0.4% and a 10‑year Treasury yield rise to 4.93%—contributed to the sell‑off.

What to watch next

Investors will monitor the outcome of Nvidia’s board investigation into Jensen Huang, as any resolution could restore confidence and affect the company’s market rank. Anthropic’s IPO timeline and final valuation will also be pivotal, given Microsoft’s financial stake. Finally, broader macro indicators, including the