The co-founder of Nvidia, Jensen Huang, has seen the company’s value soar to $2.2 trillion since its inception in 1993. Recently, an ETF launched by Leverage Shares focusing on Nvidia investments at three times leverage surpassed $100 million in assets. Despite its success, Nvidia has become the third-most-shorted stock on the market, with short interest exceeding that of companies like Microsoft, Apple, and even Tesla.
The significant surge in Nvidia shares was triggered by a revenue forecast that exceeded analysts’ expectations by up to 75%. However, this rapid growth has also brought about increased volatility in the stock, with Nvidia’s implied volatility more than double what it was at the beginning of the year. Despite short-sellers facing billions in losses, they continue to bet against Nvidia’s success. The upcoming GPU Technology Conference in March is expected to shed light on Nvidia’s future AI ambitions, hinting at what lies ahead for the tech giant.
As Nvidia shares have risen over 84% since the start of the year, analysts are cautious about potential trends in the stock’s price movements. Some warn that pullbacks above 12% could lead to choppy trading and significant declines. While Nvidia shares were trading 3.4% lower at $887.88, the stock had reached an all-time high of $974 earlier in the month. As Nvidia continues to captivate investors with its technological advancements, the tech giant’s future direction remains a topic of intrigue in the investment world.