Short sellers incurred unrealized losses of approximately $3 billion (approximately 450 billion yen) as the U.S. stock price of Nvidia soared on the 22nd due to the artificial intelligence (AI) boom. S3 PartnersanalyzeThe authors point out that this has become an “AI generation nightmare” for short sellers.
Nvidia has $18.3 billion worth of short interest, making it the third-largest stock in the U.S. market, according to S3.
“Mark-to-market losses were inevitable for many short sellers who were trying to liquidate their positions after Nvidia’s earnings release,” said Ihor Dusaniowski, managing director of predictive analytics at S3. “Short sellers will probably wait a bit to find a more favorable exit,” he said.
Nvidia’s sharp rise sparked a rally in the overall price of U.S. semiconductor stocks. According to S3 data, short sellers lost $4.3 billion in unrealized losses in one day on semiconductor stocks. Semiconductors have been the biggest liability this year for short sellers, with market value losses amounting to $7.2 billion since February.
Top 10 Biggest Single-Day Market Cap Gains
Nvidia’s post-earnings rally propels stock to top of the leaderboard
Source: Bloomberg
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news-rsf-original-reference paywall">Original title:Nvidia Nightmare Causes $3 Billion Loss for Short Sellers (1)(excerpt)
2024-02-23 16:22:00
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