NVIDIA Corporation (NVDA) faced a challenging trading day, with its stock declining due to a mix of geopolitical tensions and production issues. The U.S. government's impending restrictions on the sale of advanced AI chips to certain regions could significantly impact NVIDIA's market reach. Additionally, production delays with the Thor chip and overheating problems with the Blackwell AI processors have raised concerns about the company's ability to sustain its competitive position. These factors, combined with a broader market downturn influenced by mixed economic signals and anticipation of the Federal Reserve's policy meeting, have contributed to the stock's decline.
The AXS 1.25X NVDA Bear Daily ETF (NVDS) responded to these developments by rising 0.87% to $30.15 as of 4:40 PM on Tuesday, December 17.