This article first appeared on GuruFocus.
Nvidia (NVDA, Financials) is heading into its Q1 earnings report with another layer of market attention: a large short position.
S3 Partners said Nvidia still has the largest notional net short exposure in the S&P 500. That shows how widely the stock is being used by traders, not just as a bet against Nvidia, but also as a hedge against the broader technology and artificial intelligence trade.
The timing matters because expectations are already high. Nvidia has been one of the biggest winners from AI spending, and investors will be looking closely at data center revenue, chip demand and management’s outlook for the next quarter.
A strong report could put pressure on short sellers and push the stock higher. A weaker outlook could give bears more room after a long rally.
For investors, the earnings call is about more than one company’s results. Nvidia has become a major signal for confidence in the AI trade across the market.