Short sellers have made significant profits by betting against several top tech companies this year. Nvidia (NVDA) and Tesla (TSLA) are among the stocks being targeted, with short sellers collecting nearly $15 billion in losses so far this year. Tesla’s 40% decline has been a major contributor to these gains.
The downturn is part of a broader trend, as the “Magnificent Seven” tech giants – including Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), and Meta (META) – are underperforming the S&P 500 index. Investors have become increasingly concerned about the companies’ valuations, with Apple’s stock down nearly 14% this year.
The sell-off is attributed to a combination of factors, including growing concerns over slowing economic growth, increasing tariffs, and rising investor scrutiny of Big Tech’s spending on AI. The recent release of a cheaper AI model from Chinese company DeepSeek has also weighed on the tech sector.
However, experts like BMO Capital Markets’ Brian Belski argue that these companies are “monster entities” that will continue to shape the US stock market growth trajectory. With most stocks now around 20% below their 52-week highs, investors will need to reassess whether appetite for these companies has returned.
Source: https://finance.yahoo.com/news/short-sellers-have-made-15-billion-betting-against-tesla-and-nvidia-in-2025-164652312.html