Direxion's Nvidia bull and bear ETFs face Nov. 17 Nvidia earnings

Nvidia reports fiscal third-quarter results on Nov. 17, with the stock off more than 27% over the past month, according to ETF Trends. Two Direxion funds give traders a way to take a view into that print: the Direxion Daily NVDA Bull 2X ETF (NVDU) seeks 200% of Nvidia's daily return, and the Direxion Daily NVDA Bear 1X ETF (NVDD) seeks the daily inverse, unleveraged.

Both are single-stock funds rather than index products, and ETF Trends calls them event-driven plays for risk-tolerant traders.

For an advisor fielding a client request to trade or hedge the Nov. 17 print, the daily reset sets the holding period and the position size, not the direction of the earnings surprise. That structure implies a 27% decline spread across several weeks does not produce a 54% gain in NVDD or a 54% loss in NVDU; the compounded result depends on the sequence of daily moves. The arithmetic, rather than the earnings call, is the due-diligence item.

The month included midterm election results viewed as hostile to data-center construction plans, according to the report. Nvidia named CFO Colette Kress interim CEO, and Jensen Huang is the company's now-former chief executive, according to ETF Trends. Morningstar's Brian Colello names Kress and Ian Buck, who steers Nvidia's AI plans, as internal candidates to succeed Huang permanently. The report adds that prediction markets give decent odds to Rene Haas, ARM's chief executive and a former Nvidia vice president, as an external candidate.

Nvidia's last forecast effectively called for $700 billion of AI revenue in calendar-year 2027, Colello said. "The other burning issue will be the company's views on data center development in the United States," he said, adding that he is interested in "whether the election has led to any immediate pauses in orders or concern about future demand."

Deutsche Telekom plans to add 20MW of Nvidia B300 capacity in Munich, as ETF Daily previously reported. Colello also said Morningstar has "a very high fair value uncertainty rating for Nvidia." The Nov. 17 earnings update is the next scheduled event for both funds.