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, driven by strong AI chip demand, concerns arose about Nvidia potentially scaling back orders for TSMC's advanced packaging technology. TSMC's CEO, C.C. Wei, dismissed these rumors, affirming rising demand. However, speculation about the sustainability of the AI boom and the potential impact of new U.S. export controls on AI chips contributed to investor caution, affecting Nvidia's stock performance.
The Direxion Daily NVDA Bull 2X Shares (NVDU) ETF experienced a decline, closing at $91.22, down 4.02% from the previous close of $95.04, and currently trading at $91.38, down 3.85% as of 4:40 PM on Thursday, January 16.