New York, June 10, 2026, 04:11 EDT
- Nvidia ended Tuesday at $208.19, off 45 cents, after a new Apple AI announcement did nothing for the stock.
- Apple said it will tap Nvidia GPUs in Google Cloud for some of its toughest Apple Intelligence tasks, marking a change for a company that’s usually kept hardware in-house.
- Tech shares slid on Tuesday with the Nasdaq down 1% and the Philadelphia semiconductor index dropping 1.9%. Selling in the sector picked up again.
Nvidia traded lower Tuesday, despite getting a nod from Apple, which said it plans to run some of its most intense AI jobs on Google Cloud servers using Nvidia chips. The news gave Nvidia a fresh endorsement but did little to steady the stock, as investors kept cutting exposure to AI names.
Apple is turning to Nvidia GPUs after pushing its own silicon and privacy setup for years. The switch gives Nvidia a new customer win with big name value, though just how much business Apple will bring isn’t known yet.
Apple is moving its Private Cloud Compute system outside its own data centers for the first time. The company said AFM 3 Cloud Pro, its top server-side model for multi-step agentic tools and tougher reasoning, now runs on Nvidia GPUs in Google Cloud. Apple said it worked with Google and Nvidia to make the expansion happen.
Nvidia closed Tuesday down 0.2% at $208.19, leaving its market cap a bit over $5 trillion. Nasdaq’s regular session was set to open at 9:30 a.m. Eastern, following extended-hours trading—which usually sees less liquidity than the main session.
The stock wasn’t trading on its own. The S&P 500 slid 0.26% Tuesday, with the Nasdaq Composite dropping 0.97%. The Philadelphia semiconductor index lost 1.9%, after falling as much as 8.6% earlier in the session. “There’s also a rotation going on,” said Michael O’Rourke, chief market strategist at JonesTrading. He described some of the action as “a momentum unwind.” Reuters
Apple’s news is a mixed bag. Nvidia stays at the heart of AI infrastructure, but Apple is getting the chips from Google Cloud, not buying a big batch straight from Nvidia. That makes the revenue piece tricky to pin down and puts Alphabet’s Google in the frame as both cloud seller and AI-chip competitor, with its tensor processing units, or TPUs, which Google designs itself.
The AI supply chain could see changes. Reuters said this week Google has ordered more than 3 million TPUs from Intel for 2028. Nvidia is also looking at Intel tech for a possible multi-GPU chip, but hasn’t ordered anything yet. Jacob Bourne, technology analyst at eMarketer, said the report is “evidence” big AI firms want backup options beyond TSMC. Reuters
D.A. Davidson analyst Gil Luria said, “Supporting Intel supports U.S.-based manufacturing,” bringing the debate back to politics in Washington. Luria said that comes into play for firms working with the U.S. administration. Reuters
China still looks like the tougher risk. Reuters said Tuesday that Beijing is working on a five-year plan worth about 2 trillion yuan—$295.43 billion—to put up new data centers. The goal is to use homegrown suppliers such as Huawei for at least 80% of key tech like AI chips. That would mostly shut out Nvidia and AMD, according to Reuters, but the plan is early and could still shift in the details.
Policy heat from Washington is still on. Two senators from both parties have called for the Trump administration to crack down harder on contract chipmakers like TSMC, pressing the White House to block advanced AI chips from going to Chinese firms’ overseas units. They sent the letter after earlier rules tried to plug a loophole in Nvidia-type chip exports sent through other countries.
Nvidia is still seeing strong numbers. The chip giant posted fiscal first-quarter revenue of $81.6 billion, up 85% from the prior year. Data-center revenue was $75.2 billion, a 92% jump. CEO Jensen Huang said the “AI factories” buildout is speeding up. Nvidia also okayed another $80 billion for share buybacks and bumped its quarterly dividend. NVIDIA Newsroom
The risks are clear. Apple is going with Nvidia hardware, but that might just show confidence in Nvidia’s platform rather than bring in big new sales right away. China could push a lot of money into its own chips and skip Nvidia. The AI trade has looked crowded, and those plays can drop quickly if investors pull profits. What matters for Nvidia now is if Apple’s move leads the market to count it as real new demand, or if it turns into just another piece of good news for a stock with high expectations already built in.
