Nvidia loses world's 2nd most-valuable company spot to Microsoft

Nvidia has lost its position as the world's second-most valuable company to Microsoft amid a decline in its stock price. Microsoft shares were down 0.4% at USD 543.25, while Nvidia's shares fell over 6% to around USD 167.11. This shift in market capitalization comes as investors express concerns about the sustainability of the AI boom and an investigation involving Nvidia CEO Jensen Huang. The decline in Nvidia's stock is attributed to uncertainty surrounding its future in the AI market and scrutiny over Huang's leadership. Nvidia had previously surged in value due to high demand for its chips, which are essential for data centers powering generative AI. Microsoft continues to benefit from strong investor confidence in its cloud and AI sectors, which has helped maintain its market value.