Short sellers who bet against Nvidia lost $2.2 billion in a single day amid the chip maker's stellar rally
- Traders betting against Nvidia lost $2.2 billion on Thursday, according to financial data firm S3 Partners.
- The chipmaker's stock saw a scorching rally this week after it reported glowing forecasts that beat Wall Street estimates.
Short sellers who bet against Nvidia lost billions of dollars in a single day as the stock staged a stunning rally after the chipmaker released business forecasts that blew Wall Street estimates out of the water.
Traders who had shorted the shares incurred $2.2 billion in mark-to-market losses on Thursday alone as Nvidia's share price soared more than 24%, according to financial data firm S3 Partners.
So far this year, those who bet against the company lost an estimated $8 billion, as its shares more than doubled in price in 2023. The Santa Clara, California-based semiconductor firm's stock is by far the most loss-making short year-to-date, while Tesla is second at $5.8 billion and Apple at $5 billion, per S3.
Nvidia is still the fourth most-shorted stock in America, trailing behind Apple, Tesla and Microsoft, Bloomberg reported, noting that short sellers have wagered more than $9 billion on the chipmaker's share price falling.
However, short sellers have been ditching their positions – albeit at a loss. The number of Nvidia shares that these contrarian traders shorted fell by nearly 11% in the past month, and have plummeted around 23% so far in 2023, per Bloomberg.
"The inflection in Generative AI development is here," Goldman Sachs analyst Toshiya Hari said. The bank raised its price target from $275 to $440, and brushed aside the threat of competitors on the rise against Nvidia.
JPMorgan also doubled its price target for the stock to $500, and the firm said it expects more demand for AI tech to follow.
- Elizabeth Holmes ordered dinners for Theranos staff but made sure they weren't delivered until after 8 p.m. so they worked late: book
- The CEO of software giant Intuit, which has avoided mass layoffs, says tech firms axed jobs because they misread the pandemic
- Elon Musk told Chinese Tesla workers in a late night speech that their hard work 'warms my heart' — 6 weeks after some complained about bonus cuts
- Major train accidents that India witnessed in last 15 years
- Odisha rail crash: Rescuers try to raise buried coach, death toll at 238
- Largest road networks in the world – India beats China to take the second spot
- Manoj Bajpayee joins the league of on-screen lawyers like Pankaj Tripathi, Shriya Pilgaonkar & more
- List of famous things to buy in Lonavala