 "SoundHound AI, Super Micro, C3.ai Among AI Stocks With Highest Short Interest: Here's How Retail Is Positioned")
synopsis
Among tech stocks, some "smid-cap" artificial intelligence names have attracted strong bearish bets, with the fluid macro and geopolitical conditions partly to be blamed.
The U.S. market is set to open the holiday-shortened week on a positive note, and a reversal in the recent tariff-induced downtrend could benefit stocks, even those with higher short interest.
Among the artificial intelligence (AI)-levered tech stocks, the following have the highest short-interest percentage:
SoundHound AI, Inc. (SOUN)
- Short interest: 29.20%
- Upside potential (based on Koyfin-compiled consensus price target): 74%
SoundHound AI is a voice and conversational AI solutions company based in Santa Clara, California. The stock was on a tear in 2024, gaining 836%, capitalizing on the multiple partnerships the company forged for deploying its voice AI solutions.
It topped out at $24.98 on Dec. 26 and has been on a downtrend since then, as the broader market downturn sapped risk appetite. The stock has lost over 58% this year.
Earlier this month, Cantor Fitzgerald reduced the price target for SoundHound AI stock to $8.50 from $10 and maintained a 'Neutral' rating, The Fly reported.
Retail sentiment toward SoundHound AI stock turned to 'neutral' (54/100) by early Monday from the 'bullish' mood a day ago, although the message volume stayed 'normal.'
A retail watcher said the stock could climb back above $10 on Monday as the market was set to extend its rally.
Super Micro Computer, Inc. (SMCI)
- Short interest: 19.40%
- Upside potential (based on Koyfin-compiled consensus price target): 58%
San Jose, California-based Super Micro manufactures AI servers and partners with Nvidia to supply the latter's high-performance AI accelerators through its data centers.
The substantial bearish bets are despite the stock's rebound from a dismal year marked by accounting issues, skepticism flagged by short sellers, and a delay in filing financial reports.
Super Micro became current with its financial reports filing by the Feb. 25 Nasdaq deadline, and its second-quarter business update, although pointing to near-term pressures, relayed optimism regarding the fiscal year 2026.
The Fly reported that Goldman Sachs downgraded the Super Micro stock to 'Sell' in late March, citing valuation, competitive pressure, and gross margin pressure.
An ongoing Stocktwits poll, which has collected responses from 1,600 users so far, found that 87% of respondents expect the next 20% move in the Super Micro stock to be to the upside.
C3.ai, Inc. (AI)
- Short interest: 16.70%
- Upside potential (based on Koyfin-compiled consensus price target): 51%
Enterprise artificial intelligence software applications company C3.ai has seen its shares decline by over 40% this year. The stock has traded in a 52-week range of $17.03-$45.08.
C3.ai stock settled Friday's session up 1.43% to $20.59.
A bullish user said they expected the stock to move toward $40.
Another user expressed comfort at the stock's closing above the $20 level last week. They also highlighted the positive technical formation of a "golden cross."
The beaten-down levels could increase confidence in these stocks, but the lingering tariff uncertainty and recent signals of a scale back in companies' AI investments pose downside risks.
The Global X Artificial Intelligence & Technology ETF (AIQ) ended Friday's session up nearly 2% at $34.45.
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