Amid sustained investor interest in semiconductor giant Nvidia (NASDAQ: NVDA), the stock has become a target for short sellers, with bearish bets mounting rapidly.
NVDA shares ended the last session at $160, up 1.1%, and have climbed over 2% in the past week.
During this rally, data shows that on July 8, Nvidia recorded a short volume of 36.4 million shares, accounting for 57.32% of total trading volume.
This followed an equally elevated reading on July 7, when short volume hit 34.8 million shares, or 57.65% of the day’s volume.
While short volume reflects daily trading and differs from short interest, persistently high short volume can be a warning sign of a looming short squeeze, especially when bullish momentum is building.
What’s next for Nvidia stock price?
If NVDA’s price rises sharply, short sellers may be forced to cover their positions, triggering a wave of buying that could send the stock soaring in a short period. This “squeeze” dynamic often fuels sharp, volatile moves.
It’s worth noting that after starting the year on a losing streak, Nvidia has been on a relentless run since the end of Q1, driven by an impressive earnings report, easing U.S.-China trade tensions, and sustained investor confidence in the future of AI chips.
At the same time, investors are loading up ahead of Nvidia’s next earnings report on August 27, which could either accelerate the rally or temper expectations. Wall Street is forecasting $45.6 billion in revenue, a sharp increase from $30 billion a year ago.
Notably, this comes as Nvidia has reclaimed the top spot as the world’s most valuable company by market capitalization. The company is now aiming to become the first entity to reach a $4 trillion valuation, an achievable milestone if the stock trades at $163.
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