Take a look at the latest Short Interest data of key counters of Advanced Micro Devices, Inc. (NASDAQ:AMD) stock, Alibaba Group Holding Ltd (NYSE:BABA) stock and NVIDIA Corporation (NASDAQ:NVDA) stock.
Shares of Jack Ma led Alibaba Group Holding Ltd (NYSE:BABA) and GPU maker NVIDIA Corporation (NASDAQ:NVDA) have had a great year so far, in contrast to the run of Dr. Lisa Su led Advanced Micro Devices, Inc. (NASDAQ:AMD) which also had similar expectations. However, AMD stock has delivered more than 100% returns over the last one year which has kept investors interested for a similar performance in 2017 as well. With sky-high expectations from these stocks, understandably, investors would be eager to know about the latest market sentiment about these stocks. Short interest is a good metric to assess the market sentiment. The latest available short interest numbers, as of Sep 29th, were out yesterday. So, let's take a look at how short interest has changed for the three stocks in question, over the previous fortnight.
Short interest in Advanced Micro Devices, Inc. (NASDAQ:AMD) stock at an all-time high.
We had highlighted in our recent coverage, how the $2 billion bet on AMD stock could go wrong, which was based on the real-time short interest data provided by S3 partners. Now, the official short interest numbers, which became available yesterday, confirmed that short interest in AMD shares is at an all-time high. AMD stock is the second most shorted stock on NASDAQ in terms of the number of shares shorted. Short interest in AMD has risen to 160.53 million shares, from 158.1 million shares as of mid-September, a mild increase of 1.5%. As a percentage of float, short interest came in at 18.2%, with days to cover at 2 days.
The semiconductor company is to report its third quarter 2017 earnings on October 24, 2017 after market close. As highlighted in our recent coverage, AMD stock now has vastly improved fundamentals. With reports of Ryzen CPUs helping the company gain some significant market share and positive response to its latest products, the upcoming earnings report will be an interesting one and could be one of the company's best in recent times. Any positive trigger could send the stock soaring, which could be further aided by some heavy short covering. The high short interest in AMD stock makes it an ideal candidate for a short squeeze as we head into the earnings announcement later this month.
Short interest in Alibaba Group Holding Ltd (NYSE:BABA) stock cools off a bit.
Just a month ago, it was reported that Alibaba stock was the most shorted stock in the world. However, the bears have had a tough time with Alibaba stock showing no signs of slowing down. After a minor blip at the end of last month, where it saw a sizeable correction, BABA stock has gained more than 10% since then. And, if the latest short interest numbers are anything to go by, a section of bears are looking to give up on Alibaba stock. Short interest in Alibaba stock fell by 3.9%. Short interest is only 134.31 million shares, as of the latest reporting date compared to 139.79 million in the preceding period. The days to cover stood very high at 7 days. As a percentage of float, short interest declined from 5.5% to 5.3%.
We have maintained our bullish stance on Alibaba stock for some time now. Given the multi-billion dollar opportunities ahead of the Chinese eCommerce giant, it remains a good long-term buy. Recently, Alibaba's Cainiao investment had made investors a little apprehensive, however, your investment in Alibaba stock is safe for now, as highlighted in our recent coverage. With more and more growth drivers emerging for the Chinese online retail giant, it would be rather too risky to bet against Alibaba stock for now.
Shorts are fleeing NVIDIA Corporation (NASDAQ:NVDA) stock.
NVIDIA stock's mind-boggling return of more than 610% over the last two years might have made some investors skeptical who were of the thinking that the stock had run up too much. However, short interest in NVIDIA stock has fallen sharply, after a steady rise in short interest over the last two months. Of late, it appears that the shorts have retreated from NVDA stock. Short interest in NVIDIA has declined to 14.75 million shares, from 17.88 million shares as of mid-September, a significant 17.5% drop. Short interest now stands only at 2.6% of NVIDIA's float, with days to cover at about 1 day.
Presently, NVIDIA is trading very close to its all-time high and it appears as if it is all set to make new all-time highs. NVIDIA stock is flying high on Artificial Intelligence (AI) wave. NVIDIA recently unveiled its brand new Drive PX Pegasus board at GTC Europe 2017 which boasts a net performance improvement of almost 10x from its predecessor. The Drive PX Pegasus board is also claimed to be the first board capable of Level 5 Autonomy in the self-driving market. The Jen-Hsun Huang led company is surging ahead in AI. AI-driven data center segment also happens to be the fastest growing segment for the company. NVIDIA stock is one of the best pure AI plays in the market which understandably makes sense about why shorts are fleeing the stock.
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