The Direxion Daily NVDA Bull 2X Shares (NVDU) closed down 7.04% at $69.30 on January 31, 2025, as Nvidia Corporation's stock faced significant pressure, dropping 3.39% to $120.42. The decline in Nvidia's stock was primarily driven by concerns over DeepSeek's AI model, which utilizes fewer Nvidia chips, challenging Nvidia's premium valuation and future demand assumptions. This development has raised fears of reduced chip demand and increased competition from companies like Advanced Micro Devices and tech giants developing custom chips. Additionally, Nvidia's reliance on major players such as Amazon and Google, who are moving towards in-house chip solutions, further threatens its business model. Despite Nvidia's strong sales growth of 430% last year, the market reacted negatively to the potential disruption posed by DeepSeek, leading to a contraction in Nvidia's profit multiple.