Nvidia ETF NVDL Sinks After CEO Huang Speaks

The leveraged ETF jumped before tanking after the AI chipmaker's CEO spoke at the CES Consumer Electronics Show.

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sumit
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Senior ETF Analyst
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Reviewed by: Kent Thune
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Edited by: Ron Day

Shares of Nvidia Corp., and ETFs that track the stock, are on rollercoasters Tuesday after company CEO Jensen Huang gave a keynote address at the Consumer Electronics Show in Las Vegas, Nevada, a day after the stock rose to a record high.

Nvidia gapped up by 2.5% to a record high at the open, before dropping into the red, losing as much as 6%.

The highly popular GraniteShares 2x Long NVDA Daily ETF (NVDL) followed suit, rising almost 5% at the open before plunging 12% at its lows. That exchange-traded fund aims to double the performance of Nvidia stock. The GraniteShares 2x Short NVDA Daily ETF (NVD), which rises at double the rate in which Nvidia falls, was up 11%.

Huang painted a bright future for the AI industry and his company in his CES presentation. From AI agents to autonomous vehicles to humanoid robots, Huang said that Nvidia would be at the center of several multitrillion dollar opportunities. 

NVDA All-Time High

Still, a day after the stock hit its all-time record, investors used the gap up in shares at the open as an opportunity to take profits. On Monday, the stock jumped 3.5%, bringing to 16% the total gain since Dec. 18. 

Still, even after the latest drop, Nvidia remains neck-and-neck with Apple as the world’s largest company by market cap, and the leveraged NVDL remains the largest leveraged ETF by far.

The ETF has around $6 billion in AUM thanks to rapid price appreciation and $2.7 billion of inflows over the past year.

To be sure, investors have pulled out $463 million from the fund since the start of the year, a large outflow in a span of three days.

Nvidia’s decline on Tuesday came on a down day for the broader markets. The SPDR S&P 500 ETF Trust (SPY) was last trading down by 0.5% while the Invesco QQQ Trust (QQQ) fell by around 1%.

A stronger-than-expected report on job openings pushed interest rates higher. The 10-year Treasury bond yield was last trading up by 6 basis points to 4.69%, its richest level since April 2024.

As of this writing, Nvidia was trading off of its worst levels of the day thanks to comments by CFO Colette Kress.

Speaking at a JP Morgan online event, she said that demand for Nvidia’s chips continues to exceed supply and that she expects growth from the rollout of AI technologies to last through the end of the decade.  

Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.

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