Microsoft Overtakes Nvidia After 3% Drop

On Thursday, Nvidia’s shares experienced a nearly 3.4% decline, resulting in Microsoft reclaiming the title of the world’s most valuable company

On Tuesday, Nvidia’s market capitalization surpassed that of Microsoft. At the current price of $131.88, the company was expected to experience a loss of approximately $91 billion compared to its most recent closing market value of $3.34 trillion.

Microsoft’s market value also decreased, falling to $3.30 trillion, as its shares were down 0.4% at $444.8 in afternoon trading.

Microsoft, Apple, and Nvidia compete three-way to determine the most valuable company globally. As of the afternoon, the market capitalization of the iPhone manufacturer, which Tim Cook leads, was $3.22 trillion. The company’s shares were trading at $210.10, a 2.2% decline.

On Wednesday, Elon Musk announced on his X social media platform that Dell and Super Micro are providing server cabinets for the supercomputer of his xAI startup. The supercomputer will enhance the capabilities of Grok, the company’s AI tool.

Dell Technologies and Super Micro Computer experienced a decline of 1% and 0.7%, respectively.

The companies manufacture servers equipped with Nvidia chips, allowing them to capitalize on the increasing demand for processors that fuel nearly every AI application.

Musk stated earlier this year that the Grok 2 model required approximately 20,000 Nvidia H100 graphic processing units to train and that the Grok 3 model and subsequent versions would necessitate 100,000 Nvidia H100 processors.

“Microsoft invests in AI and generates revenue, whereas Nvidia generates substantial profits and revenues from AI.” Jake Dollarhide, CEO of Longbow Asset Management, stated, “That is why it is impossible to spell Nvidia without AI.”

Nvidia’s stock price has nearly tripled this year, contributing to the market’s growth. Dell’s stock has increased by almost 95%, while Super Micro shares have more than quadrupled in value during the same period.

The Philadelphia SE Semiconductor Index (.SOX), which closed at a lifetime high on Tuesday, has increased by nearly 34% since the most recent nadir in April.

“This will be a tech market in which the strong will get stronger as AI technology helps Big Tech Stalwarts monetize their massive installed bases across the enterprise (Microsoft, Oracle, Dell, Amazon, etc) and consumer landscape (Meta, Apple, Google) over the coming years,” according to Dan Ives, an analyst at Wedbush Securities.