Single-stock ETFs betting heavily on Nvidia's blistering rally plunged overnight, tracking losses logged by the chip darling. Leveraged single-stock ETFs supercharge the companies they track, delivering amplified returns.

Speculators and traders flocked to buy leveraged funds which aim to deliver double the daily return in Nvidia, asset managers said on Tuesday. The company's stock suffered the biggest one-day fall in market capitalization in history on Monday in response to news that China's DeepSeek launched a new artificial intelligence model.

Day traders spent last year shoving billions of dollars into leveraged Nvidia Corp. ETFs in a bid to amp up their gains on the hottest stock on the planet. Now those wagers are in peril. Most Read from BloombergWhat Happened to Hanging Out on the Street?

Single-stock ETFs betting heavily on Nvidia’s blistering rally plunged overnight after tracking losses logged by the chip darling.