Short positions in NVIDIA Corporation surged this week as the company surpassed Apple Inc to become the second most valuable company on Wall Street. Data from S3 Partners revealed that short positions in Nvidia reached $34.4 billion, making up about 1% of the company’s total market capitalization. This marked a significant increase compared to short positions in Apple Inc and Tesla Inc. S3 Partners CEO Ihor Dusaniwsky noted that Nvidia now holds the largest short position in the US market.
Nvidia has experienced a remarkable increase in market capitalization of over 100% this year, driven by strong sales and profits in the artificial intelligence sector. This growth has led to speculation that Nvidia could potentially surpass Microsoft Corporation as the most valuable company on Wall Street, especially since Microsoft is a key customer of Nvidia.
The company’s positive momentum has been fueled by its better-than-expected earnings in mid-May, where it provided guidance for the second quarter that exceeded Wall Street expectations. Additionally, Nvidia announced a 10-for-1 stock split, which is set to take place on Friday. This news has further boosted investor confidence in the company’s future prospects.
Overall, the surge in short positions in Nvidia reflects the growing interest and excitement surrounding the company’s innovative technologies and the significant role it plays in the artificial intelligence industry. As Nvidia continues to expand its market presence and deliver strong financial performance, it remains a key player to watch in the tech sector.
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https://www.investing.com/news/stock-market-news/nvidia-short-bets-at-34-bln-after-it-overtakes-apple-in-valuation-s3-partners-3475049
