Elliott Management takes short position against Nvidia citing overvaluation concerns

Elliott Management, led by Paul Singer, has taken a significant short position against Nvidia, betting that its stock is overvalued. The firm purchased put options on 1.45 million Nvidia shares, amounting to about $195 million. Elliott's filings reveal at least $600 million in downside exposure to Nvidia, reflecting concerns about the sustainability of demand for its graphics chips. The firm previously described Nvidia and other tech stocks as being in a "bubble." In addition to Nvidia, Elliott holds substantial put options on major indexes, including the Nasdaq-100 and S&P 500. The firm manages around $70 billion in assets and has expressed skepticism about the long-term viability of some AI applications.