Elliott Management, led by billionaire Paul Singer, has taken significant bets against Nvidia, claiming it is in a stock bubble and that AI hype is exaggerated. The firm purchased put options on 1.45 million shares, amounting to about $195 million, alongside broader bets against major indices like the Nasdaq-100 and S&P 500. This move suggests a cautious outlook on Nvidia's future amid speculation about the sustainability of demand for its products. Elliott's total downside exposure related to Nvidia exceeds $600 million, reflecting a substantial hedge against their long investments.
Elliott's strategy to bet against Nvidia reflects concerns over a potential bubble in technology stocks, with the firm defining the hype around AI as overblown.
Elliott's exposure of at least $600 million is a significant bet against Nvidia, indicating their belief that the company's stock may not sustain its current levels.
The firm acquired put options valued at $195 million specifically on Nvidia shares, highlighting a cautious stance amidst a broader investment strategy.
Despite the significant positions taken, details on strike prices and maturities remain undisclosed, leaving uncertainty on the cost of Elliott's hedging strategies.
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