Investors bet on Nvidia share recovery by buying leveraged ETFs

Funds aiming to deliver double the daily return in Nvidia gain after DeepSeek shock

Nvidia stock suffered history's biggest one-day fall in market capitalization on Jan. 27 but by the end of the day flows into leveraged exchange-traded funds linked to the chip design company turned positive. © Reuters

January 29, 2025 09:56 JST

(Reuters) -- Short-term traders are proving eager to bet on a rapid Nvidia recovery, pouring money into the three largest leveraged exchange-traded funds, which are linked to gains in the share price of the AI chipmaking giant.

Speculators and traders flocked to leveraged funds that aim to deliver double the daily return in Nvidia, asset managers said on Tuesday in New York. The company's stock suffered the biggest one-day fall in market capitalization in history on Monday in response to news that China's DeepSeek launched a new artificial intelligence model.