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Business Insider
182 days

Paul Singer's Elliott Management bets against Nvidia after calling it a 'bubble' and saying AI is 'overhyped'

1. Elliott Management took significant short positions against Nvidia via put options. 2. The firm believes Nvidia's stock is in a 'bubble' and AI is 'overhyped.' 3. Elliott has about $600 million in downside exposure to Nvidia. 4. Put options on the QQQ and S&P 500 ETFs also involve Nvidia indirectly. 5. Nvidia stock value remains high after a past 100% increase.

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FAQ

Why Very Bearish?

Elliott Management's bearish stance could influence investor sentiment, similar to past declines after hedge fund shorts were revealed.

How important is it?

The involvement of a significant hedge fund like Elliott Management signals increasing skepticism about Nvidia's growth potential.

Why Short Term?

Immediate reactions to Elliott's position may quicken market adjustments as investors reassess risk.

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