Nvidia Stock Traders Bracing for Wild Post-Earnings Swings Amid Record Short Interest
Nvidia stock traders are bracing for wild post-earnings swings as short interest in the tech giant has reached an all-time high. According to S3 Partners, investors have shorted 265 million Nvidia shares, worth a notional $50 billion, the highest short exposure in the entire S&P 500 index.
This marks a significant increase since September, with short interest rising both in terms of shares and percentage of float. Despite this, Nvidia's stock has remained range-bound, suggesting potential skepticism rather than stress.
The options market is currently pricing in an implied 4% one-day post-earnings move on either side, suggesting a potential $2 billion one-day swing for the short side. Analysts expect revenue to rise 67% to $65.7 billion and adjusted profit to rise 71% to $1.53 per share.
Nvidia's 50-day moving average has remained flat since November, while the MACD and RSI are near neutral, suggesting no strong directional bias. The top 10 shorts in the S&P 500 index sum to $240 billion, or nearly a quarter of the $1.1 trillion in total notional short exposure across all index constituents.