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Nvidia short bets rake in over $6 billion in profits after DeepSeek panic
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Nvidia short bets rake in over $6 billion in profits after DeepSeek panic
Jan 28, 2025 9:19 AM

Jan 28 (Reuters) - Short sellers of artificial

intelligence-related stocks raked in bumper profits after the

smashing debut of low-cost AI models from China's DeepSeek

spooked Wall Street, with bets against Nvidia ( NVDA ) yielding record

profits totaling more than $6 billion.

Traders betting against AI-darling Nvidia ( NVDA ) earned

profits of about $6.6 billion - the biggest single-day move ever

on the stock - according to data analytics firm Ortex.

Nvidia ( NVDA ) saw $593 billion wiped off its market value on

Monday, in the biggest single-session loss ever for any company,

after Chinese startup DeepSeek launched AI models that it said

are at par or better than industry-leading models in the United

States, at a fraction of the cost.

Short sellers of chipmaker Broadcom ( AVGO ) also earned

more than $2 billion in profits.

Other AI-related stocks, such as server-maker Super Micro

, data-center operator Equinix ( EQIX ) and energy

provider Vistra ( VST ), also witnessed heavy losses on Monday,

giving investors betting against these firms combined profits of

more than $900 million, according to Ortex.

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