The semiconductor sector continues to drive major market narratives, with Nvidia firmly positioned at the center of AI-driven momentum. Against this backdrop, the leveraged inverse NVD ETF posted a notable rebound on December 8, offering bearish traders a temporary reversal after months of sustained pressure.

NVD ETF Records a Solid Daily Gain Amid Chip-Sector Swings

The NVD ETF climbed sharply during the session, reaching an intraday peak of $9.05 as traders looked to capture downside reactions in Nvidia shares. Closing at $8.64, the ETF secured a meaningful +2.98% upside despite the broader bullish trend in semiconductor equities. This rebound suggests rising interest from tactical traders anticipating potential cooling in Nvidia’s valuation after several record-setting weeks.

However, the ETF’s after-hours dip to $8.60 (-0.46%) indicates lingering uncertainty. With Nvidia continuing to dominate the AI hardware landscape, any bullish continuation heavily suppresses sustained gains for the leveraged inverse NVD.

Surging Volume Highlights Elevated Trader Engagement

Trading activity was strong today, with total volume reaching 31.23 million shares, surpassing the average of 27.10 million. The heightened activity confirms that traders remain actively engaged in expressing short-term bearish sentiment. As a 2x leveraged inverse ETF, NVD magnifies daily price movements, making it appealing for intraday or short-duration strategies while remaining inappropriate for long-term holding due to compounding decay.

The ETF’s sharp 72.08% year-to-date decline reflects Nvidia’s incredible performance throughout 2025—powered by expanding demand across AI data centers, next-generation GPUs, and deep enterprise adoption. Every NVDA rally applies downward pressure on NVD, limiting any sustained upside potential.

Chip-Sector Momentum Continues to Challenge Bearish Positions

Nvidia’s leadership in AI computing, combined with accelerating investment in high-performance GPUs, remains a major obstacle for bearish ETF structures like NVD. Still, several emerging risks could create short-term opportunities: moderated enterprise spending, supply-chain adjustments, and possible regulatory examination of AI hardware concentration.

While these variables could introduce volatility, traders must remain cautious. The broader semiconductor narrative continues to favor upside, making rallies in NVD both rapid and short-lived.

Looking ahead, the performance of the NVD ETF will remain tightly tied to daily moves in Nvidia. Traders should closely monitor earnings updates, AI spending trends, and macro shifts—from interest rate expectations to tech-sector risk sentiment. Volatility may generate tactical openings, but the overarching risk remains Nvidia’s ongoing dominance.