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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] As NVIDIA's stock split enters the countdown phase, Yahoo Finance reported on the 6th (local time) that short selling against NVIDIA has surged.
Yahoo Finance analyzed that the rapid increase in short selling ahead of the stock split is due to the high likelihood of NVIDIA's stock price falling in the short term.
Experts believe that while stock prices tend to rise in the long term after a stock split, they could also experience a short-term decline.
Given NVIDIA's recent surge, surpassing a market capitalization of $300 billion, experts have reported a significant increase in short selling activities as profit-taking may occur following the recent rapid rise in stock prices.
Currently, NVIDIA has a short interest balance of $34 billion, surpassing even Apple and Tesla, making it the top-ranked company in terms of short interest.
Notably, approximately 1.6 million shares have been shorted over the past 30 days, amounting to around $2 billion.
This surge in short selling seems to stem from some investors betting on a decline in NVIDIA's stock price, considering its recent sharp increase.
However, Yahoo Finance forecasted that short sellers could suffer significant losses if there's a rush of retail investors leading to a rise in stock prices following the stock split.
Meanwhile, NVIDIA's stock split is scheduled to take place immediately after the market closes on the 7th, with trading starting from next Monday, the 10th. This stock split will be carried out at a ratio of 1:10, with existing shareholders receiving 9 additional shares for each share they own.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
