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Why is NVDU Up Today After Retail Buying

The Direxion Daily NVDA Bull 2X Shares ETF (NVDU) closed on January 30th at $74.55, up 0.93% from the previous day, as Nvidia's stock faced a volatile trading session amid ongoing market concerns. Nvidia's stock price, which ended the day at $123.54, experienced a slight decline of 0.13%, reflecting investor apprehension over the recent DeepSeek AI developments. The emergence of DeepSeek, a Chinese AI platform, has sparked fears of increased competition and potential export restrictions from the U.S., contributing to Nvidia's stock volatility. Despite these concerns, retail investors have been actively buying the dip, injecting $2 billion into Nvidia-related assets, as reported by J.P. Morgan. However, institutional investors have largely stayed on the sidelines, amplifying the stock's recent downturn. Nvidia's stock has been under pressure since January 27, when the DeepSeek news first impacted the market, leading to a 17% drop on that day alone. Analysts remain divided, with some maintaining a buy rating, while others express caution due to potential shifts in AI spending and technological competition.