NVIDIA Corporation (NVDA) faced a challenging trading day, with its stock declining due to several negative developments. Reports of potential thermal issues in Nvidia's GB300 and B300 systems have raised concerns about product reliability, as highlighted by an analyst from TF International Securities. Additionally, insider selling by key executives, including Donald F. Robertson, Jr. and CFO Colette Kress, has added to the pressure, suggesting possible concerns about the company's near-term prospects. The semiconductor market is also experiencing a shift towards custom AI chips, with increased demand for ASICs over general-purpose GPUs, further complicating Nvidia's market position. Production delays of Nvidia's Thor chip and regulatory scrutiny over its acquisition of Run.ai have compounded these challenges.
The AXS 1.25X NVDA Bear Daily ETF (NVDS) responded to these developments by rising 2.81% to $29.99 as of 4:40 PM on Monday, December 16.