Short sellers betting against Nividia lost A$3.5 billion in 24 hours, as the chipmaker’s shares surged 27 per cent yesterday after forecasting sales 50 per cent higher than Wall Street estimates.
According to data from S3 Partners, those betting against Nvidia have lost A$12.45 billion on the company alone.
The stock surge came after Nvidia forecast current-quarter revenue of A$16.8 billion, compared to the Wall Street average estimate of A$10.93, and announced it had boosted supply to meet surging demand for its AI chips.
This came as devastating news for short sellers, who have bet over A$13.8 billion on Nvidia’s decline. The stock is currently the fourth most-shorted US stock, behind Apple, Tesla, and Microsoft.
Nvidia is also currently valued at A$950 billion, making it hairs away from joining the prestigious trillion-dollar company club. It will become the first chipmaker to be valued at US$1 trillion, joining behemoths like Alphabet, Apple, and Microsoft.
Bloomberg reports this is likely. The stock has 47 buy ratings, 10 holds, and no sells, according to data compiled by Bloomberg.
Nvidia Chief Executive Officer Jensen Huang told Reuters it started full production of AI chips last August, months before ChatGPT caused demand for these chips.
“In January, the new demand was incredibly steep,” Huang said.
“We had to place additional orders, and we procured substantially more supply for the second half” of 2023.
In addition, the company has started selling entire AI supercomputing systems to large companies who want to better control their own supply chain.
