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Traders eye Nvidia 2x bull and bear ETFs ahead of Aug. 26 earnings
The Direxion Daily NVDA Bull 2X Shares and Direxion Daily NVDA Bear 1X Shares are set to become the focus around Nvidia’s Aug. 26 fiscal second-quarter update, with Morningstar highlighting capex strength and potential questions around AI financing.
Traders are looking to Nvidia’s fiscal second-quarter earnings update as a near-term catalyst for leveraged and inverse exchange traded funds tied to NVDA, with Nvidia scheduled to report Wednesday, August 26, according to ETF Trends.
The Direxion Daily NVDA Bull 2X Shares (NVDU) aims to deliver 200% of Nvidia’s daily performance, while the Direxion Daily NVDA Bear 1X Shares (NVDD) targets daily inverse returns, and both funds are set to reach three years old next month.
ETF Trends notes that analysts and traders may gravitate toward the bullish NVDU given expectations for another beat-and-raise quarter, supported by strong capital expenditure trends among hyperscalers and enterprises.
Morningstar analyst Brian Colello said Nvidia is expected to generate well over $300 billion of data center revenue in calendar 2026, and he flagged that investors may also seek clarity on sales or non-sales into China, as well as concerns tied to Nvidia’s financing and backstopping of partners, including its recently announced $500 billion mobilization tied to AI investment by large financial asset managers.