Nvidia is on track to become the first semiconductor firm with a $2 trillion valuation, another milestone in its ascendancy as the biggest enabler for the rush into AI. The chipmaker’s market valuation is now at $1.97 trillion valuation after briefly topping the $2 trillion mark in intraday trading on Friday 23/02/24. According to S3 Partners LLC, this week’s the surge in Nvidia share price has left short sellers with about $3 billion in paper losses.
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. NVDA is the third-largest US short with $18.3 billion of shares that have been borrowed and sold.
Yet, voices are getting stronger and stronger that NVDA is subject to “A textbook story of a Big Market Delusion”. This warning was issued by the founder of Research Affiliates!