The GraniteShares 2x Long NVDA Daily ETF (NVDL) surged 5.04% intraday, reflecting significant bullish momentum in its underlying asset, NVIDIA stock. The leveraged ETF's performance indicates strong investor optimism driving the semiconductor giant's shares higher.
The rally was fueled by NVIDIA founder and CEO Jensen Huang's unexpected participation in a high-level U.S. delegation visiting China. Market observers interpreted Huang's presence, secured through a last-minute personal invitation, as a positive signal for potential improvements in the complex U.S.-China semiconductor trade relationship. His subsequent comments describing the talks as having "gone well" further bolstered sentiment, sparking speculation about eased restrictions on advanced AI chip exports, including the H200 series, to the Chinese market.
Concurrently, a major catalyst was a highly optimistic research report from Bank of America Securities, which reaffirmed NVIDIA as a top industry pick. The firm raised its price target for NVIDIA to $320, citing expectations that artificial intelligence infrastructure spending will be "stronger and more enduring" than previously forecast. Analysts projected the total addressable market for AI data center systems to reach $1.7 trillion by 2030, with NVIDIA positioned as a primary beneficiary of this sustained investment cycle.
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