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Is a Giant Short Squeeze Brewing in C3.ai (AI) Stock Right Now?


  • Artificial Intelligence (A) innovator C3.ai (AI) may be the market’s next big short squeeze.
  • Data from CNBC finds it among the stock’s with the highest short interest in April, 2023.
  • Additionally, interest from the r/WallStreetBets community remains high even after falling.
AI stock - Is a Giant Short Squeeze Brewing in C3.ai (AI) Stock Right Now?

Source: Shutterstock

The artificial intelligence (AI) boom is dominating markets and shows no signs of slowing down. One expert from SocGen recently stated that it is responsible for all the growth the S&P 500 has seen in 2023. But even as AI stocks continue to demonstrate impressive gains, short-sellers seem to be eyeing some of the space’s biggest names. One such company is C3.ai (NYSE:AI), an enterprise AI producer that shot to market prominence as the first AI wave took over.

Yet, since then, it has struggled to stay on top as critics raise questions regarding its growth and stability. And new information suggests that AI stock is a likely candidate for a short squeeze.

What’s Happening With AI Stock

After a week of mostly gains, AI stock is back in the red today. As of this writing, it is down more than 1.5% for the day. With its current volatility, it is impossible to speculate which direction it will go from here.

However, more important than its performance today is the fact that it is a likely short-squeeze candidate. CNBC recently screened FactSet data to determine which Nasdaq and NYSE stocks had the highest short interest as of April 28. At the time, short interest accounted for 33% of C3.ai’s float. While data from Fintel indicates that it is now 32%, that is still a fairly high percentage. Short investors have just over four days to cover their positions.

Overall, AI stock receives a high short squeeze score from Fintel, scoring just under 80 out of 100.

It should also be noted that C3.ai is receiving significant attention from retail investors. Currently the top trending meme stock on ApeWisdom, it has seen both mentions and updates fall since yesterday but is still seeing high interest. Per the platform:

“During the last 24H AI (C3 AI) was mentioned 311 times on WallstreetBets by a total of 257 different users. C3 AI received 66% positive comments versus 34% negative comments.”

AI has been ranking among the top meme stocks on r/WallStreetBets all week and across social media in general. While experts such as InvestorPlace contributor Muslin Farooque have ranked it among the best Reddit stocks to buy, its current performance suggests its growth prospects are limited. However, the possibility of a C3.ai stock short squeeze remains a distinct possibility.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/is-a-giant-short-squeeze-brewing-in-c3-ai-ai-stock-right-now/.

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