Microsoft has overtaken Nvidia to become the world’s second-most valuable company after Nvidia shares plunged more than 6% on Tuesday, extending a sell-off driven by concerns over artificial intelligence spending and scrutiny surrounding CEO Jensen Huang.
Microsoft shares fell 0.4% to $543.25, while Nvidia dropped to around $167.11. The decline followed a 4.3% fall on Monday, putting Nvidia on track to lose more than $470 billion in market value over two trading sessions. Microsoft moved ahead of Nvidia in global market capitalisation rankings for the first time since June 2025.
Investor concerns over whether massive investments in AI infrastructure will generate sufficient returns have added to the pressure on Nvidia.
The company’s board launched an internal investigation on Sunday, while the FBI is examining whether Huang was targeted in a foreign intelligence operation.
Reports have focused on Huang’s relationship with Alice Huang, also known as Huang Le, a Chinese businesswoman who is not related to him. Huang acknowledged being unfaithful to his wife but did not provide further details.
According to a report by The Information, Alice Huang’s network helped facilitate shipments of at least $7.5 billion worth of Nvidia chips to Chinese companies.
The report alleged that around 240,000 H100, H200 and A100 chips reached China through a network involving Shanghai Century Litong and Singapore-based Megaspeed International.
It also linked the computing capacity to companies including Alibaba, Tencent and several smaller AI laboratories.
Alice Huang, who previously held positions in the financial sector, became Megaspeed’s controlling shareholder in March 2023.
Megaspeed has attracted scrutiny from US authorities over suspected chip shipments to China. However, no public finding has established that the company violated US export controls.
