The recent volatility in Nvidia’s NVDA stock has made it the riskiest short position among the biggest technology heavyweight equities, surpassing those of Tesla 
TSLA, according to a report released on Wednesday by financial analytics firm S3 Partners.
Last month, investor worries that the emergence of a low-cost artificial intelligence model backed by Chinese startup DeepSeek would threaten the dominance of Nvidia, triggered a selloff in tech stocks that wiped out nearly $600 billion in the chipmaker’s value.
Unlike in the past, short sellers did not react to the 15% selloff in Nvidia’s shares, breaking its historical correlation, said S3 Partners, adding that “with short interest lower and earnings approaching, Nvidia could see a post-earnings rebound, though volatility remains elevated.”
After the closing bell, Nvidia reported fourth-quarter results that beat analyst estimates with revenue jumping 78% to $39.3 billion, compared with estimates of $38.04 billion. The company’s adjusted per-share profit of 89 cents was also ahead of estimates of 84 cents a share.
Its current quarter revenue forecast was also higher than expectations, signaling continued strong demand for artificial intelligence chips.
Nvidia’s shares gyrated in after-hours trade following the report, initially rallying about 1%, then turning 0.5% lower and were last up 1.7% at $133.5. They had closed up 3.7% to $131.28 in regular hours and were down 2.2% year-to-date.
