Nvidia is currently facing challenges with its latest AI chips, leading to a reduction in orders from major clients like Microsoft, Amazon, Google, and Meta. The issues, primarily related to overheating and chip connectivity, have caused these companies to scale back their orders for Nvidia's Blackwell GB200 racks. As a result, there is growing concern about the potential impact on Nvidia's future revenue streams, which has contributed to a decline in its stock price. The delays in deploying these chips have prompted some clients to either wait for upgraded versions expected later this year or consider purchasing older AI chips.
The Direxion Daily NVDA Bear 1X Shares (NVDD) ETF saw a rise of 1.26% to $6.43 as of 5:00 PM on Monday, January 13.