{"id":88374,"date":"2025-08-22T09:24:12","date_gmt":"2025-08-22T09:24:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/88374\/"},"modified":"2025-08-22T09:24:12","modified_gmt":"2025-08-22T09:24:12","slug":"short-sellers-bank-5-6b-betting-against-ai-stocks","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/88374\/","title":{"rendered":"Short Sellers Bank $5.6B Betting Against AI Stocks"},"content":{"rendered":"

Short sellers made huge profits this week by betting against artificial intelligence<\/a> stocks, as the recent hype around AI<\/a> started to cool off. More specifically, according to data from S3 Partners, traders shorting AI-related stocks made $5.6 billion in profits over just two trading days. Interestingly, many experts are starting to question whether the AI trend is becoming a bubble. In fact, OpenAI CEO Sam Altman recently compared the current excitement in AI to the dot-com bubble of the early 2000s, which caused the Nasdaq (QQQ)<\/a> to eventually lose over 80% of its value. <\/p>\n

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Furthermore, a new report from MIT\u2019s Project NANDA found that 95% of companies using AI haven\u2019t yet seen a return on their investment. As a result, stocks from the so-called \u201cMagnificent Seven<\/a>\u201d have taken a hit. Meta Platforms (META)<\/a> dropped 4% in the past week, while Nvidia (NVDA)<\/a> fell 3.8%. At the same time, Microsoft (MSFT)<\/a> and Apple (AAPL)<\/a> lost nearly 3%. Alphabet (GOOGL)<\/a> also declined by 1% to help short sellers earn over $2.8 billion by betting against these giants. Notably, $1.1 billion came from Meta alone, after short sellers placed $4.7 billion in bets against it last week.<\/p>\n

Losses were even steeper among smaller AI-focused and semiconductor<\/a> companies. Indeed, Advanced Micro Devices (AMD)<\/a> fell more than 10%, while Broadcom (AVGO)<\/a> and Micron Technology (MU)<\/a> both slid over 5%. CoreWeave (CRWV), a company that builds AI data centers for Microsoft and Meta, plunged 24%. In addition, Palantir Technologies (PLTR)<\/a>, which had doubled in value since April, lost over 15% in its worst losing streak since March, giving short sellers another $1.6 billion in gains<\/a>.<\/p>\n

Which Magnificent Seven Stock Is the Better Buy?<\/p>\n

Turning to Wall Street,\u00a0analysts think that MSFT stock has the most room to run out of the Magnificent Seven<\/a> stocks. In fact, MSFT\u2019s average price target<\/a> of $624.08 per share implies more than 23% upside potential. On the other hand, analysts expect the least from Tesla (TSLA)<\/a> stock, as its average price target<\/a> of $307.23 equates to a loss of 5%.<\/p>\n

\"\"<\/a><\/p>\n

See more MSFT analyst ratings<\/a><\/p>\n

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