NVIDIA Corporation's stock faced a turbulent trading session, influenced by the Federal Reserve's recent rate cut announcement, which triggered a selloff in large-cap technology stocks. Despite positive developments such as Microsoft's significant purchase of NVIDIA's AI chips and the launch of the Jetson Orin Nano Super Developer Kit, the stock couldn't sustain its gains. The market's reaction to the Fed's decision to slow future rate reductions added to investor anxiety, leading to a broad retreat. Additionally, competition concerns were heightened by AMD's new AI chip patent, potentially challenging NVIDIA's market position in the AI GPU sector.
The Direxion Daily NVDA Bull 2X Shares (NVDU) ETF experienced a decline, dropping 2.75% to $87.10 as of 4:40 PM on Wednesday, December 18.