Nvidia Becomes Largest Short Position as Market Cap Surges

Nvidia (NASDAQ: NVDA) has overtaken other tech giants to become the largest short position by notional dollar value, reaching $34.3 billion, according to new data from S3 Partners. The rise is primarily due to Nvidia’s surging market capitalization, which now stands at $4.3 trillion, making it the most valuable company globally. Despite this milestone, Nvidia’s short interest as a percentage of float has actually declined by 11%, highlighting strong investor demand for its shares amid the AI boom.

Tesla Inc. (NASDAQ: TSLA) holds the second spot with $32.7 billion in notional shorts, while Microsoft Corporation (NASDAQ: MSFT) follows at $30.6 billion. Apple Inc. (NASDAQ: AAPL), once the market leader, now sits in fourth with $27.7 billion. At the start of 2025, Apple led with a $3.9 trillion valuation, but a 9% drop has pushed it down to third in overall market cap. Meanwhile, Microsoft holds $3.8 trillion in market value, second only to Nvidia.

Interestingly, short interest trends reveal contrasting investor sentiment. While Nvidia’s percentage of float shorted has decreased, both Microsoft and Tesla have seen increases of about 20%. Apple remains under pressure as its valuation decline shifts investor positioning.

Volatility among these mega-cap stocks has also eased. Tesla’s volatility fell by 22%, while Nvidia’s dropped 15%, reducing its daily risk exposure by 25% and bringing its volatility closer to that of non-tech stocks. This stability makes notional short interest less sensitive to sudden price swings, reinforcing confidence in Nvidia’s position despite its size.

S3 Partners noted a clear inverse relationship between stock performance and short interest percentage of float, suggesting that strong returns continue to temper bearish bets against the biggest names in tech.