Nvidia Short Sellers Suffer a Staggering $2.3 Billion Loss in One Day

The tables have turned sharply for investors betting against Nvidia. Nvidia short sellers have seen a $2.3 billion loss in a single day following an unexpected surge in the chipmaker’s stock, leaving them reeling from a massive blow. According to data from S3 Partners, investors betting on a decline in Nvidia's share price suffered roughly $2.9 billion in paper losses on Thursday when the stock ended.

NEW YORK (Reuters) - Short sellers in shares of Nvidia Corp. were down $2.3 billion in mark-to-market losses Thursday as the stock surged more than 25% in early trading. The surge followed Nvidia's forecast of sales that far surpassed expectations, sending the stock to a record high and punishing those who had positioned themselves for a downturn.

Specifically, Nvidia short sellers have seen a $2.3 billion loss in a single day following an unexpected surge in the chipmaker’s stock. Traders betting against Nvidia Corp. suffered massive losses as the chipmaker’s stock surged to a record high after it forecasts sales that far surpassed the market's predictions. Data from S3 Partners LLC show short sellers are facing $2.3 billion in paper losses on Thursday alone amid the tech giant's intraday jump.

Short sellers incurred $2.2 billion in mark-to-market losses on their Nvidia NVDA positions in Thursday’s session alone, according to data from S3 Partners, as Nvidia soared. While Nvidia's rise caused significant pain, losses were primarily led by AI superstar NVIDIA (NASDAQ: NVDA). This situation mirrors the volatility seen in other heavily shorted stocks.

Over the past several weeks, short sellers were also hammered in popular retail trading names. Losses in Palantir (PLTR) and Hims & Hers (HIMS) totaled more than $2 billion. Now, those same short sellers have even deeper wounds to lick.