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 lingered over Nvidia's potential reduction in orders for TSMC's advanced packaging technology. This speculation, coupled with worries about the sustainability of the AI boom and the impact of new U.S. export controls on AI chips, contributed to Nvidia's stock decline. TSMC's CEO attempted to alleviate these concerns, but investor sentiment remained cautious.
The ETF Opportunities Trust T-Rex 2X Inverse NVIDIA Daily Target ETF (NVDQ) rose 4.47% to $3.27 at 4:40 PM on Thursday, January 16.