Nvidia Stock Surge Causes $3 Billion Loss for Short Sellers
- Short sellers dealt mark-to-market losses after Nvidia’s surge
- The company is the third-biggest short in the US stock market
Nvidia surged 16% on Thursday, making it the third-biggest S&P 500 company.
Photographer: Marlena Sloss/BloombergThis article is for subscribers only.
The surge in Nvidia Corp. shares on Thursday has left short sellers with about $3 billion in paper losses, according to an analysis by S3 Partners LLC, which called it an “AI generated nightmare” for bearish traders.
The mark-to-market losses are another blow for contrarians who argued that Nvidia’s sky-high valuations and speculative fever had all the makings of a market bubble about to pop. The chipmaker is the third-largest US short with $18.3 billion of shares that have been borrowed and sold, according to S3.