Nvidia is currently facing challenges with its latest AI chips, leading to delays in deployment within data centers. The issues, primarily related to overheating and chip connectivity, have prompted major clients like Microsoft, Amazon, Google, and Meta to reduce their orders. These clients are either waiting for upgraded versions of the Blackwell chips or considering older AI chip models, raising concerns about Nvidia's future revenue streams. This situation has contributed to a decline in Nvidia's stock, reflecting investor apprehension over the potential financial impact of these technical setbacks.
The AXS 1.25X NVDA Bear Daily ETF (NVDS) saw a price increase of 1.91% to $25.07 as of 5:00 PM on Monday, January 13.