Nvidia short positions at $34 billion after surpassing Apple in market cap

This week, short holdings on NVIDIA surged dramatically as the business surpassed Apple Inc. to become the second most valued company on Wall Street due to ongoing excitement surrounding artificial intelligence and an impending stock split.

The notional amount of short positions in Nvidia increased to $34.4 billion this week, according to data from S3 Partners, or around 1% of the company's total market capitalization. The analytics company stated on the social networking platform X that this contrasts with $19.4 billion in short bets on Apple and $18.4 billion in short holdings on Tesla.

In an interview with Yahoo Finance, Ihor Dusaniwsky, managing director of S3 Partners, stated that Nvidia is the "largest short in the U.S. market."

This year, Nvidia's market capitalization increased by almost 100% as the chipmaker saw exponential growth in sales and profitability due to an AI-driven surge.

Some speculated that given its recent surge in value, it would even surpass Microsoft as the most valuable business on Wall Street. Microsoft is one of Nvidia's main clients.

After reporting better-than-expected results in the middle of May, Nvidia has been on a roll. In addition to reporting second-quarter forecasts that exceeded Wall Street projections, the business also announced a 10-for-1 stock split that will take place later on Friday.

(Sources: investing.com, reuters.com)