NVIDIA Corporation's stock faced a notable decline following news of regulatory investigations by both Chinese and U.S. authorities. The Chinese probe into potential anti-monopoly violations concerning NVIDIA's acquisition of Mellanox Technologies has particularly unsettled investors, given China's significant contribution to NVIDIA's revenue. Concurrently, the U.S. Justice Department's antitrust investigation adds another layer of complexity, exacerbating concerns over NVIDIA's valuation and growth prospects. These regulatory challenges have overshadowed NVIDIA's achievements in the AI sector, leading to increased market uncertainty.
The AXS 1.25X NVDA Bear Daily ETF (NVDS) responded to these developments by rising 3.63% to $28.83 as of 4:40 PM on Tuesday, December 10.