Jim Cramer Dives Deep Into Nvidia's 'Really Incredible' Monday Surge: What Stock's Short Interest Looks Like Ahead Of Q2 Print

Nvidia Corp. NVDA shares rallied over 8% on Monday, thanks to positive analysts' commentaries concerning its second-quarter results due on Wednesday.

The stock settled Monday's session up 8.47% at $469.67, according to Benzinga Pro data, taking the year-to-date gain to over 221%.

What Happened: "Gigantic amount of short covering in Nvidia and Palo Alto Networks, Inc. PANW, said CNBC Mad Money host Jim Cramer in a post on X, formerly Twitter.

"Really incredible…Just so much shorting…," he said.

Short interest in Nvidia stock at the end of July 31 was at 26,400,064, down from 31,396,008 by July 14, according to data provided by the Nasdaq. The current stock interest is 20.9% lower than the 39,684,462 shares that were shorted in early January.

See Also: How Tio Buy Nvidia (NVDA) Stock

The short interest percentage, which is the number of shares shorted expressed as a percentage of the float, is 1.11%. This is lower than Tesla, Inc.'s TSLA 2.83% and peer Advanced Micro Devices, Inc.’s AMD 1.57%. Meta Platforms, Inc. META, which is the second-best performing S&P 500 stock this year, has a lower short interest of 1.15%,

Based on the average three-month volume of 51,081,652, Nvidia shares' short interest ratio, or otherwise the number of days needed to cover the short interest, is 0.52.

The average trading volume for Nvidia stock is 51,081,652, based on the Yahoo Finance database.

Why It's Important: Nvidia is expected to report stellar second-quarter earnings and guide toward a solid second half. If the results come in line with analysts' view, it could force the shorts – the ones who bet against a stock's rise, to cover their short positions. This will likely lead to a short-squeeze and a further rise in the stock.

In premarket trading, Nvidia stock rose 1.28% to $475.50.

Read Next: ‘Godfather Of AI’ Jensen Huang And Nvidia Will Offer Bullish Outlook To Fuel Tech Rally ‘Into Rest Of Year,’ Says Analyst

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