Nvidia slips as investors question demand for RTX Spark

Nvidia shares dropped 3.6% to $210.04 on Friday after the company unveiled the RTX Spark processor for personal computers at Computex in Taipei earlier this week. The decline occurred alongside broad weakness in semiconductor stocks and stronger U.S. labor data.

The S&P 500 fell about 1%, the Nasdaq Composite dropped 1.6% and the Dow lost 151 points. Among chipmakers, Broadcom fell about 3% after a steep decline a day earlier, Marvell Technology declined more than 8% and Micron Technology fell about 6%.

The Bureau of Labor Statistics reported nonfarm payrolls rose by 172,000 in May, above economists’ estimate of 80,000, while the unemployment rate held at 4.3%.

Traders pared earlier gains in Nvidia as they assessed the commercial prospects for premium AI-capable PCs. Market participants are seeking evidence that consumers and original equipment manufacturers will buy higher-priced devices that can run advanced AI features locally.

Nvidia confirmed it has qualified Samsung, SK Hynix and Micron to supply HBM4 memory for its upcoming Vera Rubin AI platform. Jensen Huang told reporters in Seoul, ‘All three vendors have been qualified. All three vendors are in production, and they’re all racing to support Vera Rubin.’ Huang also confirmed Vera Rubin is in full production and remains on track for deliveries starting in the third quarter.

Arm chief executive Rene Haas called memory ‘probably the toughest’ bottleneck to resolve for next-generation AI systems.

Morgan Stanley kept an Overweight rating and a $288 price target on Nvidia. The firm noted management outlined visibility into roughly $20 billion of CPU-related revenue opportunities and highlighted efforts to lower total cost of ownership for AI infrastructure deployments.

Investors are watching whether Nvidia’s new PC-focused chips generate meaningful consumer and OEM demand and whether expanded CPU and infrastructure products produce material revenue alongside the company’s GPU business.