Microsoft Temporarily Surpassed Nvidia in Market Capitalization Amid Stock Decline

On November 10, 2026, Microsoft briefly became the second-largest company in the world by market capitalization, surpassing graphics processor manufacturer Nvidia. This occurred for the first time since June 2025 amid a sell-off in technology stocks. However, the change in positions was not due to an increase in Microsoft's value, but rather a sharper decline in Nvidia's stock, which exceeded 6% during the session.

According to Reuters, at the moment of the position change, Microsoft shares were trading around $543.25, down 0.4% from the previous close. Nvidia's stock was approximately at $167 per share. However, Microsoft's advantage was short-lived, as selling pressure increased in its shares in the second half of trading.

Microsoft lost second place by mid-trading session

By 12:45 PM Eastern Time, Microsoft's shares had fallen to $527.45, representing a 3.25% decline for the day. According to Yahoo Finance, most of the intraday drop occurred after 12:30. At that time, the company's market capitalization was approximately $3.92 trillion, while Nvidia's value at a share price of $166.83 was about $4.03 trillion.

The change in stock prices led to a reduction in Microsoft's market value by approximately $130 billion compared to the previous close. This refers to the revaluation of all outstanding shares, not the actual realized losses of investors. Before the session ended, Microsoft partially recovered its position, but it was not enough to regain second place.

By the end of trading on November 10, Microsoft's shares closed at $533.16, down 2.2%. Nvidia's shares ended the day around $168.80, losing approximately 5.5%. The market capitalization of the companies was $3.96 trillion and $4.08 trillion, respectively, with Nvidia maintaining a higher position in the global ranking.

Investigation around Nvidia increased pressure on shares

One of the factors contributing to Nvidia's stock decline was the uncertainty surrounding the company's CEO, Jensen Huang. On November 8, the board of directors announced the start of an independent review of reports that the executive might have been targeted by foreign intelligence activities. A special committee with independent legal advisors has been formed for the investigation.

In an official statement, Nvidia emphasized that it currently has no grounds to believe that the company's trade secrets or U.S. national security have been compromised. The board also expressed confidence in Huang, who agreed to cooperate with the reviewers. The completion date of the investigation and its potential consequences for the company's leadership have not yet been announced.

Nvidia's stock decline began even before the trading session in question. In early October, the chipmaker's shares were priced around $243, while on November 10, their price fell below $167. Thus, in less than a month and a half, the market value of one share decreased by approximately 31%.

U.S. inflation and the launch of Claude Sheets affected market sentiment

Additional pressure on the technology sector came from October's U.S. inflation data, released on November 10. According to the Bureau of Labor Statistics, consumer prices rose by 0.4% for the month, exceeding economists' forecast of 0.3%. The statistics heightened expectations of a Federal Reserve interest rate hike and were accompanied by an increase in the yield on U.S. Treasury bonds.

For technology companies, rising bond yields can be significant as they increase the required return on risky assets demanded by investors. This is especially noticeable for companies whose valuation is largely tied to expected future cash flows. However, determining the exact contribution of macroeconomic factors to the decline of each individual stock is impossible.

On the same day, Anthropic introduced Claude Sheets – a new AI-based tool for creating and editing spreadsheets. The service allows working with formulas, tabs, formatting, and sharing, as well as exporting documents to Excel. The product is in beta testing and currently has a more limited set of features than full-fledged office editors.

The emergence of Claude Sheets intensified discussions about competition between AI tool developers and traditional software providers. Microsoft is developing its own spreadsheet solutions through Excel and Microsoft 365 and is also involved in financing Anthropic. Although the launch of the new product coincided with a decline in Microsoft's shares, it cannot be definitively stated that it was the main cause of the sell-off.

Thus, the temporary change in positions between Microsoft and Nvidia demonstrated how quickly the capitalization of major technology companies can shift during periods of increased volatility. Future dynamics will depend on the outcomes of corporate events, interest rate situations, and expectations regarding AI development spending.