Microsoft has overtaken Nvidia to become the world’s second-most valuable company, as the AI chipmaker’s shares came under pressure amid fresh scrutiny surrounding CEO Jensen Huang and reports of alleged links to a Chinese businesswoman.
On November 10, Microsoft shares were down 0.4% at around $543.25, while Nvidia shares fell more than 6% to approximately $167.11. The market movement pushed Microsoft ahead of Nvidia in market capitalisation for the first time since June 2025.
Nvidia’s decline comes amid investor concerns over the outlook for artificial intelligence spending and reports that US authorities are examining whether Huang was targeted by a foreign intelligence operation. Nvidia’s board has also launched an internal investigation.
Reports of $7.5 billion in chip shipments to China
Adding to the scrutiny, Alice Huang, a Chinese businesswoman alleged to have links to Beijing, used her relationship with Jensen Huang to facilitate shipments of at least $7.5 billion worth of Nvidia chips to Chinese companies.
According to the report, Alice Huang, along with her husband and sister, built a network of companies across China and Singapore to acquire Nvidia chips. The network reportedly included Shanghai Century Litong, which secured preferred cloud partner status with Nvidia in 2023.
The report said the network helped move around 240,000 Nvidia chips, including H100, H200 and some A100 models, into China. Some of the shipments reportedly involved chips subject to US export restrictions.Nvidia had not immediately responded to its request for comment.
Investigation adds to pressure on Nvidia
Nvidia’s board launched an internal investigation into whether Jensen Huang had been targeted by a foreign intelligence operation. The FBI is also examining the matter, according to reports.
The developments have added to investor concerns around Nvidia’s leadership, corporate governance and exposure to US-China technology restrictions. The company remains a central player in the global AI infrastructure market, with its processors powering data centres and advanced AI systems.
Microsoft’s comparatively smaller share decline helped it move ahead of Nvidia in the global market-cap rankings. The latest shift highlights how investor sentiment around AI companies can influence the rankings of the world’s most valuable technology businesses.
