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

Short-term traders are proving eager to bet on a rapid recovery in Nvidia , pouring money into the three largest leveraged exchange-traded funds which are linked to gains in the share price of the AI chipmaking giant.

Nvidia's stock outperforms despite high P/E, the Direxion Daily NVDA Bull 2X Shares ETF offers amplified returns and risks. Click to read why NVDU ETF is a Buy.

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.