Nvidia's stock faced downward pressure today, influenced by broader market dynamics and investor reactions to Microsoft's capital expenditure plans. Despite Microsoft's announcement of increased spending to support growth in cloud and AI, which initially provided a positive outlook for Nvidia, the stock closed down 4.1% at $123.70. The market's initial enthusiasm was tempered by concerns over competitive pressures from emerging players like China's DeepSeek, which offers cost-efficient AI models. This competitive landscape has raised questions about the future profitability of traditional chipmakers, including Nvidia, despite Microsoft's reaffirmed investment plans indicating confidence in the ongoing need for advanced GPU technology.
The ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF (NVDX) experienced a significant decline, closing down 8.03% at $11.00, with a current price of $11.39, reflecting a 4.77% drop from the previous close.