NVIDIA Corp. (NVDA) just dropped a $150 billion share-repurchase authorization, and the market is reacting exactly how you'd expect: Nvidia shares popped more than 2% on Monday, while one ETF got absolutely hammered.

That ETF is the GraniteShares 2x Short NVDA Daily ETF (NVD), which aims to deliver -2x Nvidia's daily return before fees and expenses. NVD was down about 5% at one point on Monday, while Nvidia was gaining nearly 2.5%. The buyback news lifted Nvidia's remaining repurchase capacity to $235 billion, and it's the largest increase in a share-repurchase program in history. The company expects to execute it through fiscal 2028.

NVD's Heavy Trading Adds to the Action

NVD has been one of the most heavily traded single-stock ETFs tied to Nvidia. On Monday, volume reached 83.9 million shares. Its average daily trading volume is around 77.6 million.

That activity highlights how investors are using leveraged ETFs to express short-term views on Nvidia rather than simply holding the stock.

NVD's inverse exposure has also produced sharply different performance from Nvidia over longer periods. The fund posted a 63% dip in the past 12 months, while Nvidia gained 29% over the same period. Because NVD resets its leverage daily, its performance over periods longer than one session can diverge substantially from -2x Nvidia's cumulative return.

Nvidia's Cash Machine Gets Bigger

The buyback expansion underscores the scale of Nvidia's cash generation as AI infrastructure spending continues. The company said the additional authorization reflects confidence in the long-term opportunity in AI and accelerated computing.

For NVD traders, however, Monday's action demonstrates the other side of the Nvidia trade: a stronger NVDA can translate into an amplified decline for the inverse ETF.

Meanwhile, Nvidia's leveraged long products are moving in the opposite direction. The T-REX 2X Long Nvidia Daily Target ETF (NVDX) was up about 7% at one point on Monday, illustrating how quickly leveraged ETF performance can diverge depending on the direction of the underlying stock.