Shareholders of chipmaker Nvidia have had reason to be happy for years. This year alone, the share price has risen 41 percent. Since the beginning of 2023, the increase has amounted to a spectacular 300 percent.

This means that Nvidia has now reached a market capitalization of 1.7 trillion dollars (approx. 1.6 trillion euros), as reported by “Business Insider”, as much as all Chinese stocks listed in Hong Kong combined.

Analysts warn against short selling

Despite the strong price development, analysts believe that prices may continue to rise. For short sellers, this creates the risk of what is known as a “short squeeze”, i.e. large losses due to unexpected sharp price increases, reports the “Handelsblatt”.

Similarly, the situation of chipmaker Arm, which has also recently seen rapid price increases, should be evaluated.

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