Nvidia Reversal Sends Leveraged Inverse ETF into Overdrive
Nvidia's (NASDAQ:NVDA) massive $150 billion buyback announcement sent its stock soaring on Monday, but the tech giant reversed course on Tuesday. The reversal had a disproportionate impact on Nvidia's leveraged inverse ETF, GraniteShares 2x Short NVDA Daily (NASDAQ:NVD), which saw unusually heavy trading activity.
Nvidia's stock gained 1.68% to $228.86 on Monday after it announced the additional buyback authorization, lifting its total remaining repurchase authorization to $235 billion. However, the stock reversed course on Tuesday as technology stocks came under pressure from a sharp rise in Treasury yields.
The GraniteShares 2x Short NVDA Daily ETF targets twice the inverse of Nvidia's daily move, making it a high-octane way for traders to position for a short-term decline in NVDA. The ETF has seen unusually heavy trading activity, with over 109.8 million shares changing hands on Monday.
Nvidia is exploring partnerships with insurers to help reduce the risks associated with loans backed by its AI chips, which could make it easier for smaller cloud providers to finance Nvidia hardware. The company also continued pushing into AI-agent security, unveiling its Open Agent Safety Platform on Monday.