The GraniteShares 2x Long NVDA Daily ETF (NVDL) fell sharply by 7.13% during intraday trading on Wednesday, mirroring a broader decline in chip stocks. The leveraged ETF, which aims to deliver twice the daily performance of NVIDIA (NVDA.US), was heavily impacted as NVIDIA's shares dropped over 2.6%.
The downturn in the semiconductor sector followed reports that Oracle faced a setback in its AI infrastructure expansion plan, initially sparking concerns among investors. However, Oracle later clarified that negotiations for the project remain on track, with overall progress meeting expectations. Despite this, the initial negative sentiment contributed to the sell-off in chip stocks, including NVIDIA, which in turn amplified the decline in NVDL due to its leveraged structure.
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