Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods. If you don't have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you.

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in NVDA.

Shares of NVIDIA Corporation (Ticker: NVDA) continue to hit new all-time highs as equity market’s adoration of artificial intelligence continues. The company has completely transformed the market landscape and made artificial intelligence a reality, but with earnings looming just around the corner, can the stock maintain its upside momentum?

Lifeblood of the Virtual World?

Nvidia is the big player in graphics processing units (GPUs) world, along with artificial intelligence, and data center solutions. Its GPUs, like the H100 and upcoming Blackwell architecture, are completely dominating AI training and inference markets. Nvidia’s software platforms, such as CUDA and Omniverse, help solidify its leadership in AI and virtual collaboration.

Its core businesses—gaming, data center, and AI—drive tremendous demand from enterprises, researchers, and gamers. Nvidia’s expansion into autonomous vehicles, with DRIVE platforms, and its growing presence in cloud computing via partnerships with major providers like AWS and Microsoft Azure, enhance its growth trajectory.

Strategic investments in AI infrastructure and acquisitions, like Arm (pending regulatory outcomes), bolster its long-term outlook. Additionally, Nvidia’s foray into generative AI and robotics positions it for future innovation.

Traders that think Nvidia’s upside momentum can continue may find a trade with Direxion’s Daily NVDA Bull 2X Shares (Ticker: NVDU), which seeks daily investment results, before fees and expenses, of 200% of the performance of NVIDIA Corporation common stock (Ticker: NVDA).

Below is a daily chart of NVDA as of July 31, 2025.

Source: TradingView.com

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results.

What if Earnings are Exhausted?

Despite all the excitement on the artificial intelligence front, Nvidia still faces regulatory hurdles, including scrutiny over its Arm acquisition and potential antitrust concerns in AI and chip markets. Investigations in the U.S., Europe, and China could lead to restrictions or fines, impacting growth.

Not to mention, some of it’s competition is intensifying from AMD, which is making a significant comeback, and other emerging AI chipmakers, which could challenge Nvidia’s market dominance if they offer more cost-effective or specialized solutions. In response, management leadership has doubled down on R&D and strategic partnerships to maintain its technological edge.

It all comes down to earnings on August 27. Expectations are for an earnings-per-share (EPS)* of $0.65. If results come in below estimates, or if management issues negative guidance, it could lead to a rout in the stock.

In this case, Direxion’s Daily NVDA Bear 1X Shares (Ticker: NVDD), which seeks daily investment results, before fees and expenses, of 100% of the inverse performance in common shares of NVIDIA Corporation (Ticker: NVDA) could provide a chance to take advantage on a correction.

*Definitions and Index Descriptions

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with NVDA and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with NVDA and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to NVDA is impacted by NVDA’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to NVDA at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to NVDA increases on days when NVDA is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with NVDA and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to NVDA is impacted by NVDA’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to NVDA at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to NVDA increases on days when NVDA is volatile near the close of the trading day.

NVIDIA Corporation Investing Risk — NVIDIA Corporation faces risks associated with meeting the evolving needs of its large markets – gaming, data center, professional visualization and automotive – and identifying new products, services and technologies; competition in its current and target markets; changes in customer demand; supply chain issues; manufacturing delays; potential significant mismatches between supply and demand giving rise to product shortages or excessive inventory; the dependence on third-parties and their technology to manufacture, assemble, test, package or design its products which reduces control over product quantity and quality, manufacturing yields, development, enhancement and product delivery schedules; significant product defects; international operations, including adverse economic conditions; impacts from climate change, including water and energy availability; business investment and acquisitions; system security and data protection breaches, including cyberattacks; business disruptions; a limited number of customers; the ability to attract, retain and motivate executives and key employees; the proper function of its business processes and information systems; its intellectual property; and other regulatory and legal issues.

Semiconductor Industry Risk – Semiconductor companies may face intense competition, both domestically and internationally, may have limited product lines, markets, financial resources or personnel and may face risks related to the availability of materials.

Technology Sector Risk — The market prices of technology-related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities. These securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily NVDA Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

ALPS Distributors, Inc.