Traders betting against Nvidia lost $2.2 billion on Thursday, according to financial data firm S3 Partners.
The chipmaker’s stock has had a torrid rally this week after announcing glowing forecasts that beat Wall Street estimates.
Nvidia is by far the most loss-making shorts since the start of the year, according to S3 partners.
Short sellers betting against Nvidia lost billions of dollars in a single day as the stock staged a stunning rally after the chipmaker released trade forecasts that sent Wall Street estimates skyrocketing.
Traders who shorted the shares suffered $2.2 billion in market price losses on Thursday alone as Nvidia’s stock price soared more than 24%, according to the data firm. financial S3 Partners.
So far this year, those who bet against the company have lost an estimated $8 billion, with its stock price more than doubling in 2023. Shares of the Santa Clara, Calif.-based semiconductor company , are by far the most loss-making of the short-date year, while Tesla is second at $5.8 billion and Apple at $5 billion, per S3.
Nvidia is still the fourth best-selling stock in America, behind Apple, Tesla and Microsoft, Bloomberg reported, noting that short sellers bet more than $9 billion on the chipmaker’s stock price plunge. .
However, short sellers exited their positions – albeit at a loss. The number of Nvidia shares that these contrarian traders have sold short has fallen nearly 11% in the past month and is down about 23% so far in 2023, according to Bloomberg.
“The inflection in the development of generative AI is here,” said Toshiya Hari, an analyst at Goldman Sachs. The bank raised its price target from $275 to $440 and brushed off the threat of rising competitors against Nvidia.
JPMorgan also doubled its price target for the stock to $500, and the company said it expects demand for AI technologies to increase.
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