New York, June 10, 2026, 04:11 EDT
- Nvidia closed Tuesday at $208.19, down 45 cents, as a fresh Apple AI disclosure failed to lift the shares.
- Apple said its most demanding Apple Intelligence workloads would use Nvidia GPUs in Google Cloud, a notable shift for a company long known for tight control of its own chip stack.
- The Nasdaq fell 1% and the Philadelphia semiconductor index lost 1.9% on Tuesday as technology selling resumed.
Nvidia shares slipped on Tuesday even after Apple confirmed it would use Nvidia chips in Google Cloud for some of its most demanding artificial-intelligence workloads, leaving investors to weigh a useful endorsement against a market suddenly less patient with AI stocks.
The move matters because Apple has spent years stressing its own silicon and privacy architecture. Its decision to lean on Nvidia graphics processing units, or GPUs — chips first built for graphics and now widely used to run AI models — gives Nvidia another high-profile customer signal, even if the size of the business is not yet clear.
Apple said it is expanding Private Cloud Compute, its system for handling AI tasks too large for a device while seeking to protect user data, beyond its own data centers for the first time. For AFM 3 Cloud Pro, Apple’s most capable server-based model for agentic tool use — software that can take multi-step actions for a user — and complex reasoning, the company said it worked with Google and Nvidia to extend the system to Nvidia GPUs in Google Cloud.
Nvidia ended Tuesday down 0.2% at $208.19, with a market value just above $5 trillion. Regular Nasdaq trading was due to open at 9:30 a.m. Eastern time, after extended-hours trading, where liquidity can be thinner than the main session.
The stock was not moving in a vacuum. The S&P 500 fell 0.26% and the Nasdaq Composite lost 0.97% on Tuesday, while the Philadelphia semiconductor index dropped 1.9% after being down as much as 8.6% intraday. “There’s also a rotation going on,” said Michael O’Rourke, chief market strategist at JonesTrading, calling part of the move “a momentum unwind.” Reuters
The Apple news also cuts both ways. It reinforces Nvidia’s place at the center of AI infrastructure, but Apple is accessing the chips through Google Cloud, not announcing a large direct purchase. That leaves the revenue effect harder to model and gives Alphabet’s Google a visible role both as cloud supplier and AI-chip rival through its own tensor processing units, or TPUs, which are Google-designed AI chips.
The competitive backdrop is getting sharper. Reuters reported this week that Google has ordered more than 3 million TPUs from Intel for 2028 and that Nvidia is also evaluating Intel technology for a possible processor that combines four graphics chips, though it has not placed an order. Jacob Bourne, technology analyst at eMarketer, called the report “evidence” that major AI players are trying to diversify supply chains still concentrated around TSMC. Reuters
Gil Luria, an analyst at D.A. Davidson, put the same issue in Washington terms. “Supporting Intel supports U.S.-based manufacturing,” he said, adding that this matters for companies managing relations with the U.S. administration. Reuters
China remains the harder risk. Reuters reported Tuesday that Beijing is preparing a roughly 2 trillion yuan, or $295.43 billion, five-year plan to build data centers, with an idea to rely on local suppliers including Huawei for at least 80% of technology such as AI chips. The report said that would effectively squeeze out Nvidia and AMD, though the plan is still in early discussion and details could change.
U.S. policy pressure is also not fading. A bipartisan pair of senators urged the Trump administration to tighten rules on contract chipmakers such as TSMC to stop advanced AI chips being made for overseas units of Chinese companies, after earlier guidance aimed at closing a loophole for exports of Nvidia-type advanced chips through third countries.
Nvidia’s own financial backdrop remains strong. The company reported fiscal first-quarter revenue of $81.6 billion, up 85% from a year earlier, and data-center revenue of $75.2 billion, up 92%. Chief Executive Jensen Huang said the buildout of “AI factories” was accelerating, and the company also authorized an additional $80 billion in share buybacks and raised its quarterly dividend. NVIDIA Newsroom
But the downside case is plain enough. Apple’s use of Nvidia hardware may validate the platform without quickly adding enough orders to move estimates; China could spend heavily while buying domestic chips; and crowded AI trades can fall fast when investors rotate out of winners. For Nvidia, the next test is whether investors treat Apple’s endorsement as fresh demand, or just another good headline in a stock already priced for a lot to go right.
