Nvidia's stock continues to face downward pressure as it grapples with a series of challenges, including difficulties in scaling up sales of its new Blackwell AI chips and geopolitical tensions that threaten to limit its market reach. The U.S. government's impending regulations to restrict the sale of advanced AI chips in regions like Southeast Asia and the Middle East are particularly concerning for Nvidia, as they aim to curb China's access to critical computing resources. This regulatory environment, coupled with a slowdown in growth projections—expected to rise by 55% in 2025 compared to over 200% y/y growth in previous quarters—has contributed to Nvidia's stock entering correction territory, down 11% from its peak.
The ETF Opportunities Trust T-Rex 2X Inverse NVIDIA Daily Target ETF (NVDQ) has responded to these developments by rising 4.66% to $3.82 as of 11:00 AM on Tuesday, December 17.