Nvidia continues to plummet, losing $430 billion in market value over two days, with Microsoft temporarily reclaiming the world's second place.

NVIDIA's stock price fell for the second consecutive trading day, with Tuesday's drop at one point exceeding 6%, resulting in a market value loss of $430 billion over two days.

On Tuesday, NVIDIA's decline was significantly greater than other major technology stocks, becoming a major factor dragging down tech stock performance.

Microsoft closed down 2.2%, Alphabet dropped about 0.4%, Meta ended flat, Apple fell about 0.6%, Tesla rose 0.5%, and Amazon gained about 1.5%. The S&P 500 index fell about 0.4%, and the Nasdaq 100 index fell 0.6%.

During U.S. trading hours, Microsoft's market capitalization briefly surpassed NVIDIA's, making it the world's second-largest publicly traded company by market value. Later, due to Anthropic releasing an office suite, Microsoft’s decline widened and it once again fell behind NVIDIA.

Shareholders File Class Action Lawsuit, Company Governance Risks Escalate

Amid stock price pressures, NVIDIA is also facing new legal and corporate governance challenges. On Monday, a shareholder filed a lawsuit in California, accusing NVIDIA and CEO Jensen Huang of misleading investors in prior disclosures and responses to related incidents, seeking compensation on behalf of investors who bought NVIDIA stock during a specified period.

The lawsuit asserts that the company and Jensen Huang failed to adequately disclose relevant relationships and associated risks, causing investors to purchase shares without fully understanding the situation.

The plaintiff also alleges that the related events may pose significant risks to NVIDIA's reputation and business prospects. This lawsuit is still in its early stages, the allegations have not yet been recognized by the court, and NVIDIA has not officially responded to the lawsuit.

Previously, NVIDIA’s board of directors announced the establishment of a committee of independent directors and the hiring of external independent legal counsel to investigate reports involving Jensen Huang.

The board stated that there is currently no reason to believe that NVIDIA's national security interests or company secrets have been compromised, but the investigation will review all available information. Jensen Huang has expressed support for the investigation and pledged full cooperation.

AI Investment Uncertainty Combined with Executive Risks, NVIDIA Faces Dual Pressure

In addition to governance concerns raised by the executive incident, whether AI infrastructure investments can continue to deliver sufficient returns remains a core issue for the market. As a key supplier in the AI computing power industry chain, NVIDIA’s stock performance is influenced not only by its own business outlook but also reflects investor sentiment about the entire AI capital expenditure cycle.

According to the Associated Press, Jensen Huang has led NVIDIA for 33 years, and his personal image is closely tied to the company’s strategy, business decisions, and market perception. As a result, the investigation has prompted investors to focus on management stability and potential succession issues.

Judging by recent market performance, NVIDIA has underperformed other major technology stocks for two consecutive trading days, indicating investors are reassessing the risks the company faces.

In the short term, the board’s investigation progress, lawsuit developments, and management team stability will become important variables affecting the stock price; meanwhile, the return prospects of AI infrastructure investment will continue to determine the market’s long-term valuation of NVIDIA.