Nvidia short sellers lose $8 billion as shares rise more than 180% in 2023

Short sellers of Nvidia Corp have lost nearly $8 billion so far this year as the stock jumped over 180% in 2023, said the financial data firm S3 Partners. Also, Nvidia Corp breached the $1 trillion in market capitalisation on Tuesday, making it the first chipmaker to join the trillion-dollar club.

Nvidia short sellers had already incurred $2.2 billion in mark-to-market loses on Thursday May 25 alone, as Nvidia’s share price soared 24% in a single trading session.

The surge in the stock price came after Nvidia stunned investors with a revenue forecast last week that surpassed analysts' expectations by more than 50%.

However, Nvidia is the fourth most shorted stock in America. Short sellers have wagered over $9 billion on the chipmaker share price falling, reported Bloomberg

Netizens on Twitter and Reddit have started drawing parallels between Nvidia and Game Stop, except the former has some solid fundamentals going for it. A possible short squeeze on the high short interest of Nvidia, after big investors covered their shorts against the stock, could have potentially triggered the huge run in Nvidia shares.

One Twitter user proclaimed “no one wants to bet against Nvidia” while sharing the chart of falling percentage of short interest on the stock.

 

 

'Inverse Cramer' was back in talk as Wall Street Silver shared a video dated September 19, 2022 in which prominent US market commentator Jim Cramer could be seen suggesting a short position on Nvidia stock.

"Short sellers are in for another rough week," wrote another user sharing possible upcoming news on AI and Nvidia.

Nvidia was co-founded in 1993 by Jensen Huang. The stock of Nvidia has surged 180 per cent in 2023 so far, settling at $401.11 on Tuesday with a total market cap at $99.20 billion. However, it tested highs of $419.38 during the session, when its total valuations raced past the much-awaited $1 trillion mark.

Also Read : 'Is Nvidia stock creating a dotcom-like bubble?’: Netizens question US chipmaker's $1-trn valuation

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