Nvidia short sellers have profited handsomely from the recent downturn in the market, taking home a staggering $5 billion in profits over just three days. This data, provided by Ortex Technologies, highlights the significant impact that market dynamics can have on the stock of the AI chip designer.
The decline in Nvidia’s stock price, which has seen a 13% slump and a loss of $430 billion in market capitalization since June 18, has been a boon for short sellers. Monday alone saw short sellers pocket $2.40 billion in profits, marking the highest single-day gain since 2019.
The recent pullback in Nvidia’s stock has been attributed to investors shifting their focus away from high-flying AI stocks and towards other sectors as we approach the mid-point of 2024. Despite the recent declines, Nvidia’s stock is still up an impressive 145% for the year, making it the second-best performer on the S&P 500.
Investors remain optimistic about Nvidia’s role in the artificial intelligence sector, driving continued interest in the company despite the recent market fluctuations. As the market continues to evolve, it will be interesting to see how Nvidia and other AI chip designers navigate the changing landscape.
