--- title: "A \"NVIDIA\" in market value evaporated overnight, who is shorting NVIDIA?" type: "News" locale: "en" url: "https://longbridge.com/en/news/277147525.md" description: "NVIDIA's latest quarterly earnings report exceeded market expectations, but its stock price still fell by 5.46%, with a market value evaporating by over $250 billion. Despite revenue of $68.1 billion, a year-on-year increase of 73%, and a forecast of $78 billion in revenue for the next quarter, market confidence remains insufficient. Analysts are concerned about whether capital expenditures from cloud service providers have peaked, and statements from NVIDIA's management have raised doubts. The influx of retail investors is not the reason for the sell-off, as institutions maintain a cautious outlook on future market trends" datetime: "2026-02-27T05:50:56.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/277147525.md) - [en](https://longbridge.com/en/news/277147525.md) - [zh-HK](https://longbridge.com/zh-HK/news/277147525.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/277147525.md) | [繁體中文](https://longbridge.com/zh-HK/news/277147525.md) # A "NVIDIA" in market value evaporated overnight, who is shorting NVIDIA? NVIDIA's close relationships with OpenAI, major cloud providers, and supply chain vendors tie their prospects together. The latest quarterly report from NVIDIA, a bellwether reflecting the AI boom, despite exceeding market expectations, still could not prevent a decline in stock price. The day after releasing its fourth-quarter financial report for fiscal year 2026, on February 26, U.S. stocks saw NVIDIA's share price drop by 5.46%, with a market value shrinkage of over $250 billion, nearly evaporating the market value of Intel ($227.1 billion), closing at a market value of $4.5 trillion. On the same day, among U.S. chip stocks, AMD fell by 3.41%, Broadcom dropped by 3.19%, and foundry TSMC also declined by 2.82%. In the most recent quarter, NVIDIA reported revenue of $68.1 billion, a year-on-year increase of 73%, setting a new historical high, and projected a midpoint revenue forecast of $78 billion for the first quarter of fiscal year 2027. Compared to previous data from LSEG (London Stock Exchange Group) showing analysts' average forecast of $66 billion for fourth-quarter revenue and $72 billion for the next quarter, NVIDIA's figures clearly exceeded expectations. However, this financial report did not instill enough confidence in the market. Data provider Vanda Track indicated that retail investors flocked to NVIDIA after the latest quarterly report was released, but they were not the driving force behind the stock sell-off. Institutions expressed concerns about NVIDIA's market trends in the future. On one hand, NVIDIA's management's statements during the earnings call were criticized by outsiders. NVIDIA's CFO mentioned several data points, including that revenue from NVIDIA's data center business from hyperscale cloud service providers accounted for just over 50%, and analysts predicted that the capital expenditures of the top five cloud providers would approach $700 billion by 2026. Even though she emphasized that NVIDIA's other customer types were also diversifying, during the Q&A session, the focus remained on whether the capital expenditures of large cloud customers had peaked and the cash flow issues arising from excessive capital expenditures. NVIDIA's CEO Jensen Huang responded that he was very confident in the cash flow growth of these customers, citing the incredible computing demand generated by intelligent applications worldwide, stating that AI has reached a turning point, useful tokens are being generated, and cloud providers are profitable. However, Michael O’Rourke, Chief Market Strategist at JonesTrading, stated that investors know "there are troubles in paradise," and what Huang described is not actually happening. The financial reports released a month ago by hyperscale companies including Amazon, Meta, Microsoft, and Google all showed that cash flow was stabilizing or even declining. The analysis of the free cash flow trends of several major cloud providers by institutions also diverged from Huang's judgment. Morgan Stanley analysts stated that Amazon is expected to have capital expenditures of $200 billion this year, which will lead to nearly $17 billion in negative free cash flow for the company this year, while Google's parent company Alphabet is expected to have capital expenditures as high as $185 billion this year, with expectations for even more in the future, potentially reaching $250 billion by 2027 Investment research firm Pivotal Research expects that Alphabet's free cash flow will decline by 90% year-on-year this year. Michael O’Rourke added that if management does not honestly disclose well-known information, investors will worry about what they do not know. The day before, shortly after NVIDIA's earnings report was released, the after-hours performance of Meta, Microsoft, Google-A, and Amazon did not see a significant boost, with a slight decline at one point. On the other hand, after NVIDIA's earnings report was released, "big short" Michael Burry also questioned a piece of data in a blog post. He pointed out that NVIDIA's purchase obligations (contracts for purchases within a specified time) skyrocketed from $16.1 billion a year ago to $95.2 billion. He believes the reason is that TSMC requires NVIDIA to provide more funding for chip customization and packaging, which means NVIDIA is placing non-cancelable orders without clear demand, making NVIDIA's chip business quite complex. Michael Burry's doubts have some basis. In January this year, Jensen Huang admitted that technology is becoming increasingly complex. NVIDIA's previous chip architecture, Hopper, was very simple, Blackwell is too difficult, and the current Rubin is almost impossible. While emphasizing that NVIDIA's R&D costs will continue to increase, Huang also talked about the deep cooperative relationship with supply chain vendor TSMC, stating that TSMC has to work very hard. At the same time, NVIDIA also needs to face customers' diversified procurement strategies and efforts in self-developed chips. Earlier this month, after NVIDIA announced a partnership with Meta involving the deployment of millions of Blackwell and Rubin chips, AMD consecutively announced collaborations with Meta involving the deployment of 6 gigawatts of GPUs. In the press release announcing the partnership with AMD, Meta's wording was quite subtle, emphasizing that it is building a flexible technology system with multiple partners while mentioning that external collaborations are integrating with its own MTIA chip self-development project. As the highest-valued company in the U.S. stock market, any movement from NVIDIA stirs investors' emotions, and its close relationships with OpenAI, major cloud providers, and supply chain vendors intertwine the prospects of these companies. After a rapid rise in stock prices, NVIDIA's stock price has almost "consolidated" for 6 months since mid-August last year, during which NVIDIA's market value once reached $5 trillion, and then quickly retraced. However, although concerns related to large investments in AI infrastructure continue, NVIDIA's recent stock performance is still better than many large tech stocks in the U.S. This year, NVIDIA's stock price has fallen by 0.86%, while Amazon, Google-A, and Microsoft have dropped by 9.92%, 1.8%, and 16.75%, respectively Since February, Meta's stock price has also experienced a correction, with a cumulative decline of 8.3% from February to now ### Related Stocks - [YieldMax NVDA Option Income Strategy ETF (NVDY.US)](https://longbridge.com/en/quote/NVDY.US.md) - [Direxion Daily Semicondct Bull 3X ETF (SOXL.US)](https://longbridge.com/en/quote/SOXL.US.md) - [Tradr 1.5X Short NVDA Daily ETF (NVDS.US)](https://longbridge.com/en/quote/NVDS.US.md) - [NVIDIA Corporation (NVDA.US)](https://longbridge.com/en/quote/NVDA.US.md) - [GraniteShares 2x Long NVDA Daily ETF (NVDL.US)](https://longbridge.com/en/quote/NVDL.US.md) - [iShares Semiconductor ETF (SOXX.US)](https://longbridge.com/en/quote/SOXX.US.md) - [Direxion Daily NVDA Bear 1X ETF (NVDD.US)](https://longbridge.com/en/quote/NVDD.US.md) - [T-REX 2X Long NVIDIA Daily Target ETF (NVDX.US)](https://longbridge.com/en/quote/NVDX.US.md) - [GraniteShares 2x Short NVDA Daily ETF (NVD.US)](https://longbridge.com/en/quote/NVD.US.md) - [VanEck Semiconductor ETF (SMH.US)](https://longbridge.com/en/quote/SMH.US.md) - [State Street® SPDR® S&P® Smcndctr ETF (XSD.US)](https://longbridge.com/en/quote/XSD.US.md) - [T-REX 2X Inverse NVIDIA Daily Target ETF (NVDQ.US)](https://longbridge.com/en/quote/NVDQ.US.md) ## Related News & Research - [Nvidia Asked by US Senators to Provide Details on Groq Deal](https://longbridge.com/en/news/279931631.md) - [LPU: Nvidia popularizes a new AI acronym](https://longbridge.com/en/news/279662346.md) - [Nvidia CEO Jensen Huang says OpenClaw is 'definitely the next ChatGPT'](https://longbridge.com/en/news/279500740.md) - ['This Changes the AI Cost Game,' Says Morgan Stanley on Nvidia Stock (NVDA)](https://longbridge.com/en/news/279430541.md) - [NVIDIA Corporation $NVDA Stock Position Lifted by GAMMA Investing LLC](https://longbridge.com/en/news/280014998.md)