By George Glover, Kit Norton, and Connor Smith

Just like that, the artificial-intelligence rebound fizzled out as chip stocks turned lower Tuesday after booking earlier gains.

The worst performers in the S&P 500 included optical networking plays Coherent and Lumentum. The stocks sank 11% and 8.2%, respectively. Super Micro Computer was also among the worst performers in the index, falling 7.6%.

Micron Technology advanced early before dropping 1.4% to $935.89. UBS wrote Monday that the selloff in memory-chip makers was an "opportunity." The firm rates Micron at Buy, with a $1,625 price target.

Chip maker Marvell Technology dropped 7.6%, having rallied 9.6% the previous session on the news that it would join the S&P 500 later this month.

Sandisk rose 0.3%, Western Digital declined 1.8%, and Qualcomm fell 5.7%.

Nvidia declined 0.2%. Apple said Monday that it will use Nvidia's graphics-processing units for at least part of its AI revamp.

Apple fell 3.6% as Wall Street was lukewarm to the iPhone maker's AI plans. The stock had been trending higher Monday before it unveiled new Apple Intelligence features during its Worldwide Developers Conference. KeyBanc analyst Brandon Nispel wrote there weren't clear signs of monetization of AI and that Siri is still worse than other large language models.

Intel dropped 2.1% after jumping 11% in the previous session. After the closing bell on Monday, it was announced that Intel was expanding its deal with Cadence Design Systems, a company which makes software and hardware that speed up the process of designing chips.

Applied Digital rose 2.4%. The data-center developer announced an unnamed large cloud provider signed a 15-year lease at a new artificial-intelligence campus. Applied Digital will earn a guaranteed $5.2 billion from the new deal, with renewal options potentially taking that figure to $12.7 billion over 30 years.

These stocks also were making notable moves:

J.M Smucker rose 10%, and was the top stock in the S&P 500, after the packaged-food maker reported better-than-expected quarterly earnings, though it expects sales to fall in the coming year.

DraftKings advanced 11%. The company reported in a regulatory filing that annualized consumer trading volume on DraftKings Predictions rose 24% month over month to $1.3 billion, while annualized total trading volume increased 34% to $3.1 billion, compared with April 2026.

Nuvalent surged 39% after British pharmaceutical company GSK agreed to buy the cancer-drug developer for $10.6 billion.

United Natural Foods fell 10%. The food wholesale distributor's fiscal third-quarter earnings were roughly in line with Wall Street expectations. The company also narrowed its full-fiscal year profit guidance.

Vail Resorts dropped 4.3% after the mountain resorts company said ski pass sales have dropped for the upcoming North American winter season and it cut fiscal-year guidance.

SailPoint declined 11% after the software provider posted fiscal first-quarter adjusted earnings that beat analysts' estimates. Investors might be picking up on decelerating annual recurring revenue, which has been a common theme in recent financial reports from software companies.

Write to George Glover at george.glover@dowjones.com and Kit Norton at kit.norton@barrons.com

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(END) Dow Jones Newswires

June 09, 2026 16:51 ET (20:51 GMT)

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