Nvidia's stock faced downward pressure today despite positive news from Microsoft regarding its capital expenditure plans. Microsoft's announcement of increased spending to support growth in cloud and AI initially provided a boost to Nvidia shares, as the tech giant's commitment to investing heavily in AI infrastructure suggested continued demand for Nvidia's high-performance GPUs. However, the emergence of China's DeepSeek and its cost-efficient AI models have raised concerns about the future profitability of traditional chipmakers, contributing to Nvidia's stock decline. Analysts remain optimistic about Nvidia's position as a key supplier in the AI and cloud computing sectors, but the market's reaction reflects the complex dynamics at play.
The Direxion Daily NVDA Bull 2X Shares (NVDU) experienced a significant decline, closing at $73.86, down 7.41% from the previous close of $79.77, and currently trading at $76.57, down 4.01% as of 6:00 PM on Wednesday, January 29.