GraniteShares 2x Long NVDA Daily ETF (NVDL) dropped sharply by 5.18% during Friday's intraday session, reflecting heightened bearish sentiment around its underlying asset, NVIDIA. The leveraged ETF's decline mirrors growing concerns about NVIDIA's valuation amid the AI boom.
The selloff followed comments from Michael Burry, the investor famed for predicting the 2008 financial crisis, who likened NVIDIA to Cisco during the dot-com bubble in his paid newsletter. Burry warned of an AI construction bubble fueled by "supply-side gluttony" and marketing hype, directly criticizing NVIDIA CEO Jensen Huang's influence. His remarks sparked fears of a potential bubble burst, weighing on NVIDIA-linked products like NVDL.
NVIDIA has pushed back against Burry's claims, releasing a rebuttal to Wall Street analysts in late November. However, the market reaction suggests traders remain wary of overexposure to AI-related equities, particularly leveraged bets like NVDL.
Comments