Nvidia's stock faced downward pressure as investors digested Taiwan Semiconductor Manufacturing Company's (TSMC) latest earnings report, which highlighted a 57% increase in net income for the fourth quarter. Despite TSMC's optimistic outlook, projecting a 25% revenue growth for 2025 driven by AI demand, concerns about Nvidia's potential scaling back of orders for TSMC's advanced packaging technology weighed on investor sentiment. Additionally, speculation about the sustainability of the AI boom and the impact of new U.S. export controls on AI chips contributed to the cautious market environment. TSMC's CEO attempted to alleviate concerns by dismissing rumors and affirming rising demand, but Nvidia's stock still experienced a decline.
The Graniteshares 2x Short NVDA Daily ETF (NVD) rose 4.15% to $29.58 at 4:40 PM on Thursday, January 16.