NVIDIA Corporation (NVDA) faced a challenging trading day, driven by multiple negative factors. 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 in sentiment towards custom AI chips, with increased demand for ASICs over general-purpose GPUs like those produced by Nvidia. This shift, along with production delays of Nvidia's Thor chip and regulatory scrutiny over its acquisition of Run.ai, has further contributed to the stock's decline.
The Direxion Daily NVDA Bull 2X Shares (NVDU) reflected these challenges, closing down 3.25% at $92.00, with a current price of $91.50 as of 4:40 PM on Monday, December 16.