Nvidia loses lead to Microsoft after falling 3%

Nvidia shares fell nearly 3.4% on Thursday, handing the title of the world’s most valuable company to Microsoft.

Nvidia, whose market capitalization surpassed Microsoft on Tuesday, is expected to lose about $91 billion to a final closing market value of $3.34 trillion, at the current level of 131 billion. $.88.

Microsoft’s market value also fell to $3.30 trillion as its shares fell 0.4% at $444.80 in afternoon trading.

Nvidia, Microsoft and Apple are in a three-way race to become the world’s most valuable company. The Tim Cook-led iPhone maker’s market capitalization is $3.22 trillion, with its shares down 2.2% at $210.10 in the afternoon.

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Elon Musk said on his social media platform X on Wednesday that Dell and Super Micro are providing server racks for his startup xAI’s supercomputer, which will be used to expand the capabilities of their AI engine, Grok.

Dell Technologies and Super Micro Computer fell 1% and 0.7%, respectively.

Companies produce servers equipped with Nvidia chips, allowing them to take advantage of the growing demand for processors that power almost every AI application.

Earlier this year, Musk said that training the Grok 2 model requires about 20,000 Nvidia H100 graphics processing units, and that the Grok 3 model and above will require 100,000 Nvidia H100 chips.

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“While Microsoft is both spending and making money on AI, Nvidia is making just as much money and profit on AI,” said Jake Dollarhide, chief executive officer of Longbow Asset Management. That’s why you can’t spell Nvidia without AI.”

Nvidia’s stock price has nearly tripled this year, driving growth in the broader market. Super Micro shares have more than tripled in value over the same period, while Dell’s shares are up nearly 95%.

The Philadelphia SE Semiconductor Index has rallied nearly 34% since its most recent low in April and closed at a lifetime high on Tuesday.

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“This will be a technology market where the strong will get stronger as AI technology helps Big Tech Stalwarts monetize their huge installed base across the enterprise (Microsoft, Oracle, Dell, Amazon, etc. ) and the consumer landscape (Meta, Apple, Google) in the coming years,” said Wedbush Securities analyst Dan Ives.

(Reporting by Yuvraj Malik and Zaheer Kachwala in Bengaluru; Additional reporting by Medha Singh; Editing by Sriraj Kalluvila and Pooja Desai)


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