NVIDIA Corporation's stock faced a decline due to several negative developments, including potential thermal issues in its GB300 and B300 systems, as reported by TF International Securities. Concerns about product reliability have been exacerbated by insider selling activities from key executives, which may indicate a lack of confidence in the company's near-term prospects. Additionally, the semiconductor market is experiencing a shift towards custom AI chips, with increased demand for ASICs over Nvidia's general-purpose GPUs. This trend, along with production delays of Nvidia's Thor chip and regulatory scrutiny over its acquisition of Run.ai, has contributed to the stock's challenges.
The Graniteshares 2x Short NVDA Daily ETF (NVD) rose 3.90% to $34.34 at 4:40 PM on Monday, December 16.