Nvidia (NASDAQ:NVDA) shorts are down $4.1bn in losses.
Financial data firm S3 Partners said on Tuesday these losses occurred over the past three trading sessions.
The chipmaker after the close last Wednesday released its quarterly results and forecast second-quarter revenue more than 50% above Wall Street estimates.
NVDA stock has jumped more than +29% in the past 5 trading days and is currently up more than +179% this year-to-date.
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The company is now the first chipmaker to ever hit a $1 trillion market valuation on Tuesday and is now the ninth public company to ever surpass the $1 trillion threshold, joining the ranks of tech giants such as Microsoft, Alphabet, Amazon, and Apple, per Yahoo Finance.
“There’s a war going on out there in AI, and Nvidia today is the only arms dealer out there.
So as a result we’re seeing this huge jump in revenues,” Raymond James managing director Srini Pajjuri said.
The company says it expects revenue of $11 billion, plus or minus 2% for the second quarter.
Wall Street was looking for $7.2 billion.
“We thought if they beat the guidance by about 5%, that’s good enough for the stock to stay where it is.
But they’re beating the guidance consensus by 50%,” said Pajjuri.
“There’s only one supplier of GPUs, and Nvidia has been investing in this market for the last 10 years.
They not only have the chips, they have the systems, the software, it’s a full stack solutions company.”
“In the short term, Nvidia is the only game in town,” he said.
Nvidia Stock Forecast
43 analysts offering a 12-month price forecasts for NVIDIA Corp have a median target of 450.00, with a high estimate of 600.00 and a low estimate of 175.00.
The median estimate represents a +12.37% increase from the last price of 400.46.
The current consensus among 48 polled investment analysts is to buy stock in NVIDIA Corp.
This rating has held steady since May, when it was unchanged from a buy rating, per CNN Business.
Nvidia beat analysts’ expectations in Q1 thanks to its data center business, which brought in $4.2 billion in revenue versus the $3.9 billion Wall Street was anticipating.
That was better than the same quarter last year when the company reported data center revenue of $3.8 billion.
“We see nobody with a full-stack solution remotely matching Nvidia’s capabilities,” Baird Equity Research senior research analyst Tristan Gerra said about the company.
Analysts anticipate AI technology has kicked off due to the popularity and growth of ChatGPT.
“Since then Microsoft and Google have jumped into the arena with search engines, bots, and more running powered by generative AI,” says Yahoo Finance.
Are AI stocks like Nvidia the future? Leave your thoughts in the comment section below.
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