The Graniteshares 2x Short NVDA Daily ETF (NVD) surged 33.71% to close at $34.27 on January 27, as Nvidia's stock plummeted 15.28% to $120.83 amid escalating competition from Chinese AI startup DeepSeek. DeepSeek's introduction of cost-effective AI models, particularly the R1, has raised concerns over Nvidia's market dominance, as these models are significantly cheaper and efficient, potentially disrupting Nvidia's high-margin business. The broader semiconductor sector also faced pressure, with the SOX index dropping 9.15%, reflecting investor anxiety over the sustainability of current valuations in the face of emerging global competition. The tech-heavy Nasdaq Composite fell 3.07%, driven by fears of an AI bubble burst, while the S&P 500 declined 1.46%, highlighting the market's sensitivity to shifts in the AI landscape.