Nvidia's stock experienced a notable decline today, driven by market reactions to Microsoft's capital expenditure plans. Despite Microsoft's announcement of increased spending to support growth in cloud and AI, Nvidia's shares fell as investors weighed the implications of emerging competition from China's DeepSeek. The tech giant's commitment to investing heavily in AI infrastructure, with plans for $80 billion in AI-enabled data centers, underscores the strategic importance of Nvidia's high-performance GPUs. However, the market remains cautious about the future profitability of traditional chipmakers amid cost-efficient AI models from competitors like DeepSeek.
The AXS 1.25X NVDA Bear Daily ETF (NVDS) saw a significant increase, closing at $26.15, up 6.65% from the previous close of $24.52.