NVIDIA (NASDAQ:NVDA) has become the largest short position by notional dollar value at $34.3 billion, according to research released Wednesday by S3 Partners, a technology-focused analytics firm, although by percentage of float, the short interest has declined in the AI powerhouse. Claiming the top spot in notional short is mainly related to Nvidia’s surging market capitalization, the report highlights.
Tesla Inc (NASDAQ:TSLA) maintains its position as the second-largest short position by notional dollar value at $32.7 billion, while Microsoft Corporation (NASDAQ:MSFT) (NASDAQ:MSFT) has moved into third place at $30.6 billion, the report indicates. Apple Inc (NASDAQ:AAPL) is in fourth at $27.7 billion in notional short interest.
The rankings represent a significant shift in market capitalization from the beginning of 2025, when Apple (NASDAQ:AAPL) led the group at $3.9 trillion but has since experienced a 9% decline in valuation, dropping it to third place in market capitalization. Nvidia, which was previously tied with Microsoft for second place in market cap, has surged 30% in market cap to claim the top position at $4.3 trillion. Microsoft sits second at $3.8 trillion. Despite this increase, Nvidia’s short interest percentage of float has decreased by 11%, while Microsoft and Tesla have each seen increases of approximately 20% in this metric.
The research highlights notable changes in volatility across these major technology stocks. Tesla has become 22% less volatile, while Nvidia has experienced a 15% volatility decline, contributing to a 25% reduction in its daily risk exposure. Using recent volatility measurements, Nvidia’s volatility has decreased to levels comparable to non-technology stocks.
S3 Partners’ analysis reveals a strong inverse relationship between stock returns and short interest percentage of float across these four companies, which creates a degree of stability in notional calculations by making them less sensitive to volatility in either component.
Source :
https://www.investing.com/news/stock-market-news/nvidia-has-largest-short-position-by-dollar-value-as-risk-exposure-declines--s3-4243507
