Bears Pile Into AI Chips, Short Squeeze Pressure Mounts

Short sellers are making bold bets on AI-linked and distressed names. The data through June 18 reveals some sharp moves.

SharonAI Holdings (SHAZ) posted the most dramatic weekly jump. Short interest leapt from 12.8% to 54.5% of free float in just seven days. Cost to borrow hit 10.4%. Bears are clearly skeptical of the AI branding.

Wolfspeed (WOLF) remains the most heavily shorted large-cap name. Short interest now stands at 103% of free float — up another 8 points week-on-week. Availability has hit zero. There are simply no more shares to borrow.

Cerebras Systems (CBRS) saw shorts climb 6.8 points to 32.4% of FF. The AI chip maker only went public last year. Bears keep piling in.

SoundHound AI (SOUN) carries a 10.5% cost to borrow — the highest among popular AI names. Short interest sits at 37.5% of float.

On the other side, Birkenstock (BIRK) and Frontier Airlines (ULCC) saw short interest drop sharply, falling 3.5 and 2.6 points respectively. Short covering there.

GameStop (GME) and Tesla (TSLA) remain quiet — both near unchanged week-over-week.

Michael Burry's weekend AI software commentary is drawing attention to names like ADBE and CRWD, worth watching for SI shifts next week.