Short sellers of Nvidia have seen significant profits as the AI chip designer’s stock experienced a sharp decline over the last three trading sessions. According to Ortex Technologies, these short sellers have made nearly $5 billion in profits, at least on paper. The stock had reached a high point on June 18, surpassing Microsoft as the world’s most valuable company. This prompted short sellers to bet against Nvidia, a move that paid off as the company has since relinquished its title to Microsoft after a three-day drop in its shares resulted in a $430 billion loss in market capitalization.
The recent pullback in Nvidia’s stock has been attributed to investors moving away from high-flying AI stocks and redirecting their investments into other sectors as the year 2024 approaches its halfway point. Despite this decline, optimism surrounding Nvidia’s involvement in the artificial intelligence sector has led to a 145% increase in its stock value this year, making it the second-best performing stock in the S&P 500 index.
The decline in Nvidia’s stock value came to a halt on Tuesday morning when the stock experienced a 5% increase. This positive movement may signal a potential turnaround for Nvidia’s stock price and could potentially impact the profits of short sellers who have bet against the company during its recent decline.
Overall, the fluctuations in Nvidia’s stock value reflect the volatility of the market and the ongoing shifts in investor sentiment towards AI stocks. While short sellers have benefited from Nvidia’s recent decline, the company’s role in driving the artificial intelligence boom continues to generate optimism among investors, potentially setting the stage for future growth and profitability in the market.
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https://finance.yahoo.com/video/nvidia-short-sellers-5-billion-181045363.html