NVIDIA's stock faced a turbulent trading session, influenced by broader market trends and specific industry developments. The Federal Reserve's announcement of a rate cut led to a selloff in large-cap technology stocks, including NVIDIA, as investors reacted to the Fed's decision to slow the pace of future rate reductions. Despite positive developments such as Microsoft's purchase of NVIDIA's AI chips and the launch of the Jetson Orin Nano Super Developer Kit, the stock was unable to sustain its gains. Additionally, competition concerns were heightened by AMD's new AI chip patent, which could challenge NVIDIA's market position.
The Direxion Daily NVDA Bear 1X Shares (NVDD) ETF, designed to inversely track NVIDIA's performance, rose 1.63% to $6.85 as of 4:40 PM on Wednesday, December 18.