Short-Sellers Shift to Targeted Bets Against AI Companies

Short-sellers are refining their strategies within the artificial intelligence ecosystem, transitioning from broad sector-wide bets against AI hardware to targeted stock selection. According to S&P Global Market Intelligence, bearish activity is expanding across the entire AI value chain, including software, robotics, autonomous vehicles, quantum computing, cloud infrastructure, and data center operators.

This shift reflects growing investor scrutiny over which companies can convert massive AI investments into sustainable returns. While investors like Michael Burry previously bet against semiconductor ETFs and firms such as Nvidia and Micron Technology, current trends focus on companies with contested valuations or execution risks. Recent targets include Soundhound AI and Z.AI due to monetization concerns, as well as Asian firms Quanta Computer and Wiwynn.

The trend follows analysis from S&P Global indicating that fewer than half of enterprise AI projects launched in the last year are expected to generate a positive return within 12 months. Matt Chessum of S&P Global noted that short-sellers are no longer making uniform calls against hardware but are instead concentrating exposure where funding and competitive positions are more contested.