Nvidia Defies Bears as Growth Accelerates Amid Rising Short Positions

Nvidia is facing criticism from bears, but some arguments against the company are unfounded. The stock has seen significant growth in its latest quarter, with revenue more than doubling and a forward earnings multiple in the teens.

The bears argue that analysts are too optimistic with their targets, but reality has shown that it's the other way around. In fact, you could have bought Nvidia five years ago for less than two times what it will earn in the year ahead.

Nearly $57 billion is being shorted against the company, which is a significant amount considering its market cap of just over $5.5 trillion. However, this could be seen as an opportunity rather than a threat.

The bears point to Nvidia's pricing as being too high, but last month's fiscal second quarter showed that the company's top-line growth accelerated for the fourth consecutive quarter, with 56% growth in Q2 FY 2026, 63% in Q3 FY 2026, 73% in Q4 FY 2026, and 85% in Q1 FY 2027.

Nvidia shattered analysts' expectations by forecasting 70% growth for next year, which is a far cry from the 45% growth that analysts had projected. This shows that perfection isn't the ceiling for Nvidia's growth.