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Goldman Sachs is in a tug-of-war battle with the rest of Wall Street when it comes to one of this year's best-performing stocks.

The firm initiated buy coverage on chip-maker Nvidia this week, citing potential for strong growth. The stock is up more than 40 percent in 2016, making it the best-performing stock in the S&P 500 technology sector. Despite the outperformance, it's still among the companies in the large-cap index with the highest percent of short interest.

So, who is right about Nvidia: Goldman Sachs or everyone else?

"When you have Goldman Sachs on one side of the seesaw and the rest of Wall Street on the other side, it's pretty fair," Dennis Davitt of Harvest Volatility Advisors told CNBC's "Trading Nation" on Thursday. "The thing that really jumps out to me is the short interest," he added.

Nvidia is within the top 5 percent of companies in the S&P 500 with the highest short interest, which leads Davitt to get short the stock via put options. "I think the stock will more than likely roll over, and that's what the options market is telling us," he added. He recommended buying the June 43-strike puts, which places the stock roughly 6 percent lower than its current price of around $46.

"The short interest itself can actually provide fuel for further upside," refuted Rich Ross of Evercore ISI. "If you look at the 50-week moving average, it's provided support along the way up until this explosive move," he said Thursday.

Ross explained that the stock is now trading 50 percent above its short-term weekly moving average, which he compared to a move up to 3,000 on the S&P 500.

"I don't think this is the most compelling entry point, but if you're thinking about shorting this stock I'd say hold on to your money," he added.

Shares of Nvidia were down nearly 2 percent on Friday.