Microsoft Overtakes Nvidia As World's Most Valuable Company For The First Time Since June 2025 As AI Concerns Hit Chipmaker Shares

Microsoft overtook Nvidia to become the world's most valuable company on Tuesday. Its market capitalisation rose above Nvidia's for the first time since June 2025. The development followed a steep fall in the chipmaker's valuation, while Microsoft's shares recorded a comparatively smaller decline.

The two technology companies have been competing for the top position in global market capitalisation rankings.

Microsoft Market Capitalisation Crosses $4.03 Trillion

Microsoft's market value stood above $4.03 trillion during Tuesday's trading session. Nvidia’s valuation, meanwhile, declined to approximately $4.02 trillion.

The difference between the two companies was around $10 billion, placing Microsoft ahead in the global market rankings. The contrasting performance of the two stocks has also been visible over the past month.

Microsoft shares gained approximately 1.89% during the period. Nvidia recorded a much sharper decline of around 23.53%.

Nvidia Shares Plunge More Than 6% Amid AI Concerns

Nvidia shares fell more than 6% on Tuesday, trading at approximately $167.11. The sharp decline reduced the chipmaker's market valuation and allowed Microsoft to move ahead.

The fall came amid growing uncertainty over the outlook for the artificial intelligence industry. Investors have been assessing the prospects of companies linked to AI development and infrastructure. Nvidia has been a major beneficiary of demand for AI-related computing technology. As a result, changes in expectations surrounding the industry can influence sentiment towards its shares.

Reports concerning a possible foreign intelligence operation targeting Nvidia CEO Jensen Huang also contributed to market concerns. An investigation into the reported operation added another source of uncertainty for investors monitoring the company.

What Microsoft's Market Value Lead Means

Microsoft reclaimed the top spot despite a slight fall in its share price. Nvidia suffered a much steeper decline, which pushed its market value below that of Microsoft.

The market capitalisations of both companies exceed $4 trillion, with only a narrow gap separating them.

Nvidia's recent losses have put Microsoft back in the lead after more than a year. However, the positions could change again, depending on how their shares perform in the coming trading sessions.

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