Despite these concerns, short bets against Nvidia only amount to 1% of the company's stock market value. Nvidia's shares have surged due to increased demand for its semiconductors from Big Tech. However, Nvidia's concentrated customer base is working to build its own AI chips, which could impact the company's market position. The potential regulatory investigation could lead to lawsuits against Nvidia, diverting resources from potentially innovative AI hardware.
Key takeaways:
- Outstanding short bets against Nvidia total $34 billion, nearly double the value of short bets against Apple and Tesla, according to data from S3 Partners.
- Nvidia's stock price has surged more than 200% from last year due to high demand for its semiconductors, surpassing Apple as the world's second-most valuable company.
- There are concerns that the stock market is in an AI bubble that could burst, which could negatively impact Nvidia's stock price.
- The Department of Justice and the Federal Trade Commission are reportedly investigating Nvidia, along with Microsoft and Open AI, for potentially anti-competitive behavior in the AI space.