Nvidia’s Balancing Act: Apple Cloud Win, Vera CPU Ambition, and a Market on Edge

The stock that has defined the AI boom is once again caught between blistering operational momentum and a punishing macro backdrop. Nvidia shares slipped 2.55% on the session to €175.62, dipping below the 50-day moving average, and have shed roughly 7.5% over the past week as investors weigh fresh concerns over inflation, interest rates, and sector-wide sentiment. Yet behind the red ink, the company is aggressively expanding on multiple fronts — from a high-profile cloud infrastructure deal with Apple and Google to a direct assault on Intel’s turf with a new data-centre CPU.

Apple’s Cloud Goes Blackwell

Apple is opening up its Private Cloud Compute infrastructure to external data centres for the first time, handing the reins to Nvidia’s latest Blackwell B200 graphics processors running inside Google Cloud. The arrangement is built around hardware-level encryption that isolates user data during processing, with Apple guaranteeing that customer queries are never stored and that Google cannot use the data for its own model training. Deployment starts immediately and is scheduled to be fully operational by the end of summer 2026.

The contract marks another prestigious infrastructure win for Nvidia, reinforcing its grip on the AI compute layer just as the broader chip sector faces headwinds.

A CPU Offensive and an Asian Alliance

On the product front, Nvidia is pushing well beyond its GPU stronghold. The new data-centre chip codenamed “Vera” packs 88 cores and is claimed to run 1.8 times faster than current x86 processors. The design directly challenges Intel and AMD in their home market, with mass production slated for the second half of 2026. SK Hynix is providing specialised memory for the platform.

Meanwhile, CEO Jensen Huang cemented partnerships in Seoul that will see Nvidia build AI factories alongside SK Telecom and Naver. A 55-megawatt facility is due online in 2027, scaling to 200 megawatts the following year. Naver expects the infrastructure to generate around 20 trillion won in revenue over the next five years. Nvidia is also collaborating with LG on robotics, while Doosan supplies the plant engineering.

Mega Projects and Insider Profit-Taking

On the home front, Nvidia is reportedly in talks to backstop OpenAI’s colossal data-centre campus in Ohio, a facility requiring ten gigawatts of power with an estimated price tag of at least $500bn. The chipmaker is said to be prepared to guarantee OpenAI’s lease payments, and the first construction phase could begin in 2028.

Should investors sell immediately? Or is it worth buying Nvidia?

Such ambitious expansion is occurring even as some large shareholders trim their positions. David Tepper cut his Nvidia stake by 13% in the first quarter, and Dan Loeb’s Third Point unloaded nearly all of its holdings. Director Mark Stevens sold a sizable block of shares in early June, pocketing roughly $221m.

Macro Storm Clouds Gather

The selling pressure is not limited to insiders. US inflation hit 4.2% in May, the highest reading in more than three years, driven by surging energy costs amid escalating tensions between the US and Iran in the Middle East. The Federal Reserve is no longer expected to cut rates this year; markets now price in a rate hike in December. Higher interest rates disproportionately weigh on the lofty valuations of growth stocks like Nvidia.

The broader semiconductor sector took a further hit after rival Broadcom offered a cautious outlook for its AI chip sales in the third quarter, dragging the entire group lower.

Fundamentals Versus Volatility

Despite the macro noise, Nvidia’s business continues to fire on all cylinders. Revenue in the most recent quarter hit $81.6bn, up 85% year-on-year, and the company guided to $91bn for the current period. Gross margins sit at a formidable 75%. Huang has described cloud providers as heading toward “trillions” in capital expenditure, a tailwind that shows no sign of abating.

Analyst sentiment remains largely bullish. Loop Capital reiterates a strong buy with a $350 price target, citing expectations that GPU shipments will double and that selling prices will rise further in coming months. The challenge is that with an annualised volatility of almost 44%, Nvidia remains acutely sensitive to macro shocks. A single rate decision from the Fed in December could trigger another major re-rating, leaving investors to weigh immense operational strength against an increasingly fragile market backdrop.