Nvidia's stock experienced a notable decline today, driven by market reactions to Microsoft's announcement of increased capital expenditure plans for cloud and AI infrastructure. Despite the positive long-term implications for Nvidia as a key supplier in these sectors, the immediate market sentiment was overshadowed by concerns over the competitive landscape, particularly with the emergence of China's DeepSeek. This has raised questions about the future profitability of traditional chipmakers, leading to a sell-off in Nvidia shares. The stock closed at $123.70, down 4.1% from the previous close, reflecting investor caution amid these developments.
The Graniteshares 2x Short NVDA Daily ETF (NVD) responded to Nvidia's stock movement by closing at $30.47, up 7.82% from the previous close of $28.26.