Wall Street is doubling down on Nvidia (NVDA) with leveraged bets, wagering that the AI infrastructure boom still has plenty of juice to keep pushing the market higher.
Weekly fund flows into the Direxion Daily NVDA Bull 2x Shares (NVDU), a leveraged ETF designed to deliver twice the daily performance of Nvidia’s stock, surged to a record $132 million last week, according to FactSet data.
That marks a 32% jump above the previous all-time high set in January and ends a four-week streak of outflows.
Investors buy NVDU when they want amplified exposure to Nvidia’s short-term price movements, effectively doubling their potential gains or losses, as a way to capitalize on turbulence in one of the market’s most influential AI plays.
The recent surge in inflows not only shows investors increasing their leverage but also underscores their renewed conviction in Nvidia’s near-term prospects. It’s a high-risk, high-reward wager that the stock’s rally is far from over.
This “Nvidia-on-steroids” trade reflects how aggressively dip buyers are positioning themselves, using leverage to magnify potential upside as Nvidia shares rebound.
Nvidia stock has slipped roughly 6% from last week’s all-time high, yet many investors see the pullback as an opportunity.
Nvidia shares are still up about 62% year to date, pushing its market capitalization to nearly $5 trillion and reinforcing its status as the market’s defining AI heavyweight.
Nvidia isn’t the only high-flying tech play attracting leveraged bets. Leveraged ETFs tied to AMD (AMD) and the tech-heavy Nasdaq Composite Index also saw a notable uptick in demand last week, according to The Kobeissi Letter.
Live by the sword, die by the sword
Leveraged bets on growth stocks can supercharge gains when the market is rising, but they can just as quickly turn painful when momentum reverses.
JPMorgan analysts blamed leveraged funds for the sharp sell-off in stocks last Friday following President Donald Trump’s announcement of additional tariffs on Chinese imports. Although Trump later walked back those remarks amid confusion over China’s stance on rare earth export controls, the initial reaction sent markets tumbling.
“Levered ETFs sold ~$26 billion in equities into the close on Friday to rebalance, driving markets to close at the day’s lows, according to our estimates,” wrote JPMorgan analyst Bram Kaplan in a note to investors.
Kaplan added that the scale of those outflows “will likely trigger further systemic selling flows this week, leaving markets fragile.”
The selling underscores that the U.S.–China trade war remains unresolved and continues to weigh on investor sentiment.
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