Semi shorts down $18 billion in mark-to-market losses in 2023, S3 Partners says

Ambarella

01/06/2023 18:03

NEW YORK, June 1 (Reuters) - Short sellers in U.S.
shares related to the semiconductor industry are down $18.31
billion in mark-to-market losses for the year to date, including
$7.2 billion in losses since last week's rally in Nvidia's stock
 NVDA.O , according to financial data firm S3 Partners.
    Nvidia's shares are up about 28% since May 24, when the
graphics chipmaker gave its blowout forecast after the bell. The
PHLX semiconductor sector index  .SOX  gained roughly 15% in May
and hit an over one-year high.
    "The Semiconductor sectors have been an investing desert for
short sellers," S3 Partners analysts wrote in the report this
week.
    They added that semiconductor sector short sellers are down
36.3% on an average short interest of $50.5 billion for the year
so far, with 63% of every stock shorted in the sector
unprofitable and 92% of every dollar shorted a losing trade. 
    Nvidia has had the largest increase in short covering in the
past 30 days, while Advanced Micro Devices  AMD.O  has had the
largest increase in short selling in that period.
    In addition, S3 cited Marvell Technology Inc  MRVL.O ,
Broadcom Inc  AVGO.O  and Ambarella Inc  AMBA.O  among stocks
prone to a short squeeze.
    "We expect short covering in these stocks as short sellers
look to trim their exposure and limit future mark-to-market
losses if these stocks continue to rally," S3 analysts said.
    

 (Reporting by Caroline Valetkevitch; editing by Lance Tupper
and Will Dunham)
 ((caroline.valetkevitch@thomsonreuters.com))