Direxion Shares ETF Trust Direxion Daily NVDA Bull 2X ETF

NVDU

Market cap $578M

The semiconductor industry remains the epicenter of market volatility and growth in 2026 thanks to an insatiable demand for hardware as the artificial intelligence (AI) buildout continues.

Considering the strength of Nvidia's (NVDA) fiscal fourth-quarter earnings report and subsequent commentary from the company, it's disappointing the stock slipped this week. That was bad news for the Direxion Daily NVDA Bull 2X Shares (NVDU), which attempts to deliver 200% of the daily returns of the leading artificial intelligence (AI) chip stock.

Tariffs continue to be the wild card swaying markets, but traders can agree that it clears a pathway for potential ideas. The Supreme Court's landmark ruling that struck down presidential tariff authority could create a high-velocity trading environment—a perfect setup for Direxion's suite of leveraged-inverse ETFs.

Nvidia Corporation dominates AI hardware, holding dominance in both GPU technology and the supporting software ecosystem. Despite a recent 20% correction, NVDA maintains bullish momentum with higher lows and continued analyst optimism ahead of its February 25 earnings report. NVDA's valuation remains stretched at nearly 39x earnings, but profitability and growth prospects are rated A+ and A, respectively, by Seeking Alpha.

Leveraged ETFs aim to double or triple the daily gain of a single stock or index. But they can also double or triple your daily losses.

The Consumer Electronics Show (CES) took place last week in Las Vegas and the convention served as a reminder that Nvidia (NVDA) is a bellwether stock – a logical status given that it's the largest company in the world by market value.

Although semiconductor juggernaut Nvidia Corp. (NASDAQ: NVDA) has become practically synonymous with the dramatic rise in artificial intelligence, the tremendous success also serves as a point of caution. True, NVDA stock has skyrocketed in recent years on the back of its graphics processors, which power the latest AI workloads.

Active traders looking for targets this week don't have to look far. That's because a familiar name reports earnings on Wednesday after the close of U.S. markets.

Nvidia and Palantir have been two prominent names riding the AI investing wave that's captivated the markets this year. However, questions surrounding valuations exceeding fundamentals are starting to surface.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.