Wed Feb 26 23:00:00 UTC 2025: ## Nvidia Stock Volatility Makes it Riskiest Short, Despite Strong Earnings Beat
**New York, NY** – Nvidia (NVDA) has become the riskiest short position among major tech stocks, surpassing even Tesla (TSLA), according to S3 Partners. While a recent selloff, triggered by concerns over a Chinese AI competitor, wiped out nearly $600 billion in Nvidia’s market capitalization, short sellers surprisingly didn’t capitalize on the 15% drop, breaking historical patterns.
This unusual behavior, coupled with relatively low short interest and upcoming earnings, suggests a potential post-earnings rebound for Nvidia, despite continued volatility, S3 Partners notes.
Those predictions proved partially correct, as Nvidia reported blowout fourth-quarter earnings after the bell, exceeding analyst expectations. Revenue surged 78% to $39.3 billion, beating estimates of $38.04 billion, and adjusted earnings per share reached 89 cents, exceeding the projected 84 cents. Furthermore, the company issued a stronger-than-expected revenue forecast for the current quarter, signaling sustained demand for its AI chips.
Despite the positive earnings report, Nvidia’s stock price remained volatile in after-hours trading, initially rising before settling with a modest gain. The stock closed regular trading up 3.7% at $131.28, but is still down 2.2% year-to-date. The volatility underscores the ongoing uncertainty surrounding the stock despite its strong financial performance.
First Piper 