(This June 6 story has been corrected to show Nvidia's ( NVDA ) market value reached $3.012 trillion, not $1.012 trillion, in paragraph 6)

(Reuters) - As Nvidia threatens to dethrone Microsoft ( MSFT ) as the world's most valuable company, at least a few investors are betting its soaring shares will return to earth.

Outstanding short bets against Nvidia ( NVDA ) stand at about $34 billion, nearly twice as much as what has been bet against Apple ( AAPL ) and Tesla, the next two biggest short bets combined, according to a report from S3 Partners on Thursday.

Short sellers have bet about $19 billion against Apple ( AAPL ) and $18 billion against Tesla, S3's data shows.

However, the short bets against Nvidia ( NVDA ) are equivalent to just 1% of its stock market value, according to LSEG data.

Insatiable demand for its high-end AI processors has sent Nvidia's ( NVDA ) stock soaring 143% in 2024.

On Wednesday, Nvidia's ( NVDA ) stock market value reached $3.012 trillion, eclipsing Apple ( AAPL ) to become the world's second most valuable company.

Nvidia's ( NVDA ) stock market value retreated almost 2% to $2.96 trillion on Thursday. Microsoft's ( MSFT ) market value stands at $3.15 trillion after the technology heavyweight's stock climbed 13% year to date.