1/14

Why is NVDY Down Today After Regulatory Challenges

The YieldMax NVDA Option Income Strategy ETF (NVDY) closed down 0.86% at $21.78 on January 14, as NVIDIA Corp's stock faced a 0.91% decline to $132.02 amid regulatory and technical challenges. The Biden administration's new AI regulations, which limit U.S. data center companies' computing power in non-allied countries, have raised long-term concerns for NVIDIA's data center sales, although these rules won't be enforceable for 120 days. Additionally, NVIDIA's Blackwell chip shipments are experiencing delays due to overheating issues, causing major clients like Microsoft and Amazon to reduce their orders. This has compounded the pressure on NVIDIA, as HSBC lowered its price target for the stock from $195 to $185, citing these challenges.