What Happened?

Shares of leading designer of graphics chips Nvidia (NASDAQ: NVDA) fell 5.9% in the afternoon session after macro pressure and an impending Senate hearing on China chip sales overwhelmed the impressive product updates earlier in the week. 

For those that missed it, the Computex announcements on June 1 were substantive. Jensen Huang confirmed Vera Rubin (Blackwell's successor) is in full production, with deliveries beginning in Q3 2026 and all three major HBM4 memory suppliers (Samsung, SK Hynix, and Micron) qualified and shipping. He also unveiled RTX Spark, a new AI PC processor developed with Microsoft for the Windows Copilot+ market, a direct move into Intel and AMD's territory. 

However, the same macro force weighing on all high-multiple tech, a stronger-than-expected May jobs report reducing the case for near-term Fed rate cuts, hit Nvidia hard during the session, given the stock prices most of its earnings years into the future. Then reports revealed that Senator Elizabeth Warren invited Jensen Huang to testify before the Senate Banking Committee on June 11 about Nvidia's China business and export control compliance, a regulatory event now sitting directly in front of investors. 

The fundamental Nvidia story is unchanged. Q2 revenue guidance stands at $91 billion, excluding any China data centre contribution. Hyperscalers have committed $119 billion in supply. The China business has been explicitly reset, H20 shipments were zero in Q1 versus $4.6 billion a year earlier, and Q2 guidance bakes in no Chinese data centre revenue, meaning it is now a cleared risk rather than a hidden one. 

The Senate hearing on June 11 was the immediate overhang: Warren's concern is whether Nvidia chips exported to China are being redirected to military applications, a charge the company denies. How Huang navigates that testimony will determine whether China policy risk becomes a structural discount or settles as background noise.

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What Is The Market Telling Us

Nvidia’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 4 days ago when the stock gained 6.3% as over 150 million shares traded hands (well above average) as CEO Jensen Huang's keynote at Computex in Taipei delivered two major announcements. 

The first was RTX Spark, Nvidia's first system-on-chip for Windows laptops and compact desktops: a superchip combining a 20-core Arm-based CPU built with MediaTek, a Blackwell GPU with 6,144 CUDA cores, up to 128GB of unified memory via NVLink, and 1 petaflop of AI performance. Launch partners include Microsoft, Dell, HP, ASUS, Lenovo, and MSI, with over 30 laptops and 10 desktops planned for fall 2026, manufactured on TSMC's 3N process. 

The second announcement was that Vera Rubin (Nvidia's next-generation data center platform combining the Vera CPU with the Rubin GPU) has entered full production, with early customers including OpenAI, Anthropic, xAI, Dell, Oracle, and CoreWeave. RTX Spark is Nvidia's formal entry into the PC processor market, the one large compute segment it has not previously owned. 

Intel fell approximately 5%, AMD dropped roughly 4%, and Qualcomm slid 8% in direct response. Arm Holdings surged 12% as the architecture underpinning RTX Spark, while Dell gained 9.5% and HP added 8% as launch partners. Vera Rubin's production ramp carries a separate significance: it confirms Nvidia is already shipping its next platform at scale, delivering 3.5 times the AI training performance and 5 times the inference performance of Blackwell to the most consequential AI customers in the world.

The two announcements together mean Nvidia is competing for AI compute spend at both ends simultaneously — in hyperscale data centers through Vera Rubin and on individual devices through RTX Spark — expanding its addressable market in both directions in the same quarter.

Nvidia is up 9.3% since the beginning of the year, but at $206.12 per share, it is still trading 12.6% below its 52-week high of $235.74 from May 2026. Investors who bought $1,000 worth of Nvidia’s shares 5 years ago would now be looking at an investment worth $11,712.

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