Nvidia’s AI Crown Slips: Microsoft Reclaims World’s Most Valuable Company Spot After Stock Drop

Mumbai: Nvidia’s shares fell by nearly 3.4% on Thursday, 20 June, dropping its market value below Microsoft’s and returning the title of the world’s most valuable company to the tech giant.

After overtaking Microsoft earlier in the week, Nvidia saw its market cap fall to around $3.34 trillion with shares trading at $131.88. This drop means Nvidia is set to lose around $91 billion from its last closing value.

Microsoft’s market value also dipped, reaching $3.30 trillion as its shares were down by 0.4% to $444.8 during afternoon trading.

Nvidia, Microsoft, and Apple are competing closely for the top spot. Apple’s market cap stood at $3.22 trillion, with shares down by 2.2% to $210.10.

AI Tools Competition

Elon Musk announced on Wednesday via his social media platform X that Dell and Super Micro are providing servers for his AI startup xAI. This infrastructure will enhance the capabilities of xAI’s tool, Grok.

Dell Technologies and Super Micro Computer’s shares fell slightly by 1% and 0.7%, respectively. These companies supply servers with Nvidia chips, crucial for the rising demand for AI processors.

Musk had previously stated that training the Grok 2 model required about 20,000 Nvidia H100 graphic processing units. Future models like Grok 3 will need up to 100,000 Nvidia H100 chips.

Nvidia’s AI Edge

“Nvidia only makes money from AI, and it’s a lot,” said Jake Dollarhide, CEO of Longbow Asset Management. Nvidia’s share price has nearly tripled this year, significantly boosting the broader market. Super Micro’s shares have tripled in value as well, and Dell’s stock is up nearly 95%.

Broader Tech Market Trends

The Philadelphia Semiconductor Index has risen by about 34% since its recent low in April and hit a record high on Tuesday.

“This is a tech market where strong companies will become even stronger,” said Wedbush Securities analyst Dan Ives. He highlighted that AI technology will help major tech companies like Microsoft, Oracle, Dell, Amazon, Meta, Apple, and Google, expand and monetize their vast user bases in the coming years.