• Research

Oct 20, 2017

S3 Analytics: Short Sellers Losses Deepen as Semiconductor Stocks Skyrocket

The PHLX Semiconductor Sector index hit an all-time high today (1,237.63), as the market continues to climb.  The index is up 5.2% month-to-date and 36% year-to-date, compared to 2% and 14.8% respectively for the S&P 500.  The Semiconductor industry, the backbone and future of the tech-sector, continues to outperform the market.  Every year more chips are required to power an increasing number of devices, while the breadth of end users has broadened to include themes such as AI, cryptocurrencies, autos, data analytics and communications. 

Although the market continues to give investors who are long shares of semiconductor companies reason to celebrate, short sellers have increased their bets recently.  S3 Partners calculates the real time dollars at risk on the short side to be $30 billion currently, an increase of $6.5 billion since the beginning of the year (on the PHLX Semiconductor Sector index constituents).  Since Jan 1st  alone, S3 calculates that short sellers are down $8.2 billion in year-to-date mark- to- market losses on their short positions.

Want deeper insight into the above analysis? Contact:
Brett.Weiss@S3Partners.net
Director, S3 Partners
The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC ('S3 Partners') to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks and merits, as well as the legal, tax, accounting and investment consequences, of such decision.


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