Nvidia Rises 6% in Pre-Market, Leveraged ETFs Amplify AI Rally

Nvidia Corporation surged more than 6% in pre-market trading Thursday, driving leveraged ETFs tied to the AI chip giant sharply higher.

Nvidia shares jumped following the company's earnings report, while leveraged products designed to deliver twice the daily return of the stock also swung sharply.

Funds in focus include the GraniteShares 2x Long NVDA Daily ETF, Direxion Daily NVDA Bull 2X Shares, T-Rex 2X Long NVIDIA Daily Target ETF, and ProShares Ultra NVDA ETF. These funds all rose between 13% and 14% in pre-market trading.

The move underscores Nvidia's growing dominance not only in the broader AI trade but also in the rapidly expanding single-stock leveraged ETF market.

Nvidia's Volatility Amplified

A roughly 7% gain in NVDA does not automatically translate into the same 14% gain for each leveraged ETF, as pricing, trading hours, and fund mechanics can vary. But these products are designed to amplify Nvidia's daily moves, so when the stock reacts unusually, they naturally become the focus.

This creates a high-stakes trade around earnings. Nvidia's results can trigger sharp reversals. The latest round of reaction proved this—the stock initially fell after earnings, then reversed sharply higher in pre-market trading. Historically, Nvidia's stock has been relatively subdued around earnings.

For bullish traders, leveraged ETFs offer a way to increase Nvidia exposure without directly using margin financing. But the same mechanism works in reverse. A sudden pullback in NVDA could produce amplified losses, while daily reset and compounding effects mean longer-term returns can differ significantly from simply doubling Nvidia's performance.

Earnings Catalyst

The rally stems from another significant earnings beat by Nvidia.

The company reported second-quarter revenue of $96.2 billion, above Wall Street's expectation of approximately $92.3 billion, with adjusted earnings per share of $2.22 also exceeding forecasts.

Nvidia then issued third-quarter revenue guidance in the range of $105.8 billion to $110.1 billion, reinforcing CEO Jensen Huang's view that demand for AI infrastructure remains strong.

The results reignited the Nvidia trading frenzy—while also highlighting the growing importance of the leveraged ETF ecosystem built around a single stock.

As long as Nvidia remains the market's AI bellwether, products like NVDL, NVDU, NVDX, and NVDB are likely to continue offering traders a way to amplify participation in every major turn of the Nvidia story—whether the next move is up or down.