Nvidia's stock faced downward pressure as investors digested the implications of Taiwan Semiconductor Manufacturing Company's (TSMC) recent earnings report. Despite TSMC's impressive 57% increase in net income for the fourth quarter and a projected 25% revenue growth for 2025, concerns lingered over Nvidia's potential reduction in orders for TSMC's advanced packaging technology. TSMC's CEO attempted to quell these rumors, emphasizing continued demand, but investor sentiment remained cautious. Additionally, speculation about the sustainability of the AI boom and the potential impact of new U.S. export controls on AI chips added to the uncertainty surrounding Nvidia's future performance.
The Direxion Daily NVDA Bear 1X Shares (NVDD) ETF rose 1.74% to $6.43 at 4:40 PM on Thursday, January 16.