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4 Heavily Shorted AI Stocks to Watch Right Now

While volatility has fueled several upside swings, all four names are down in 2026

Deputy Editor
May 20, 2026 at 2:19 PM
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Despite massive rallies across the sector over the last year, bearish traders continue piling into several speculative AI names. Though this bearish positioning reflects legitimate concerns, there is always the potential for sharp volatility and even short squeezes should momentum persist. Among the most heavily shorted AI plays on Wall Street are BigBear.ai Holdings Inc (NYSE:BBAI), C3.ai Inc (NYSE:AI), SoundHound AI Inc (NASDAQ:SOUN), and Tempus AI Inc (NASDAQ:TEM). And Nvidia (NVDA) earnings after the close could draw even more attention to the sector. 

BigBear stock was last seen up 6.8% at $4.10, looking to snap a three-day losing streak after news that a client will deploy its artificial intelligence-powered cargo security management solution in the Panama canal. The shares are down 24% in 2026, but just reclaimed support at the 60-day moving average, which kept gains in check last month. Short interest represents 29.6% of BBAI's available float, and would take shorts nearly four days to cover, at the stock's average pace of trading. 

C3.ai stock is also on the rise today, last seen up 4.5% at $9.22. The stock has found support at the $8 level, but is struggling with long-term pressure at the 80-day moving average amid a 31.6% year-to-date deficit. Short interest represents 43% of the stock's available float, or over eight days' worth of pent-up buying power.

SoundHound stock is trading flat at $8.45 today, and also has support at the $8 level. The equity has struggled to stage a meaningful rally since its March 30 record low of $7.67, and is down 15.3% since the start of the year. Of the stock's available float, 39.7% is sold short. It would take traders nearly six days to fully buy back their bearish bets. 

TEM is arguably the most interesting of the four, as it resides in the newest AI battleground, healthcare. At last check, shares of Tempus AI were off 0.4% at $35.46, nearing its late-March lows and sporting a 23.1% year-to-date deficit. Short interest accounts for 24.5% of the stock’s available float, representing nearly five days of potential buying pressure.

 

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