Nvidia lost $430 billion in two days, Microsoft briefly reclaimed the world's second-largest market cap.

Nvidia shares fell as much as 6% on Tuesday and ended down 5.47%, extending a two-day market-cap loss to roughly $430 billion and a drawdown of about $1.7 trillion since its October 6 peak, with the stock now roughly level with Apple and Microsoft after Microsoft briefly overtook it as the world's second-most-valuable company intraday. The selloff came as hotter-than-expected CPI data and hawkish Fed commentary pushed Treasury yields higher, pressuring risk assets; the Nasdaq 100 slipped 0.6% and is down about 2% since the election, while AI-linked names such as NeoClouds and optical networking lagged. Governance risk escalated as a shareholder sued Nvidia and CEO Jensen Huang in California on Monday alleging misleading disclosures, and the board hired an independent law firm to investigate, with reports that House Republicans may subpoena Huang and the FBI is examining his dealings. Goldman traders said Tuesday's selling was fundamentally driven, with hedge funds and long-only institutions net sellers concentrated in tech and industrials, and Goldman estimated CTA strategies could sell about $31 billion of S&P 500 futures over the coming week regardless of market direction. Investors are watching the board investigation, the lawsuit and management stability, plus whether AI infrastructure spending can justify valuations; Polymarket traders price only about a 16% chance Huang steps down before year-end.