In this article, we will look at the 10 AI Bubble Stocks to Short Now According to Reddit.
According to a June 2 report by CNBC, Rick Rieder, BlackRock’s chief investment officer, remains relaxed, despite many investors raising concerns of an AI Bubble. Rieder oversees more than $2.4 trillion in assets. He told CNBC that the current market is extraordinary with momentum unlike anything he has seen before. While he acknowledges the uncertainty, he advises investors to stay invested in the market.
Rieder’s bullish sentiment is based on strong earnings. He noted that tech and semiconductor stocks actually have lower price-to-earnings ratios today than last October, while forward earnings growth has climbed above 20%. He added that for Mag 7 companies, the blended earnings growth is at around 27.6%, which makes the current multiples “not as scary” to buy. Rieder added that a large sum of capital remains on the sidelines, buyback activity is robust, and higher-yield portfolios generating 6% to 7% returns are compounding in ways that keep drawing investors back into equities. He highlighted that his firm is closely monitoring the concerns regarding return on invested capital for AI infrastructure. Rieder distinguished the AI market from the dotcom bubble, noting that today’s big spenders have solid cash flows, which backs the capital raises compared to the dotcom era.
With that, let’s take a look at the 10 AI Bubble Stocks to Short Now According to Reddit.
Our Methodology
To curate the list of 10 AI Bubble Stocks to Short Now According to Reddit, we used various Reddit threads that talked about AI stocks to Short. We cross-checked the short float values for the most mentioned stocks from Yahoo Finance and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s database. We have limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 AI Bubble Stocks to Short Now According to Reddit
10. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 14
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the AI Bubble Stocks to Short Now According to Reddit. SoundHound AI, Inc. (NASDAQ:SOUN) is among some of the most shorted stocks with a short float exceeding 38%. The stock has declined more than 16% since the release of fiscal Q1 2026 earnings on May 7. However, the Street continues to see significant upside, as 8 out of 10 analysts covering the stock have a Buy rating and the 12-month average price target reflects more than 67% upside from current levels.
During the fiscal first quarter of 2026, the company posted $44.2 million in revenue, reflecting a 52% year-over-year increase, and topped Wall Street’s expectation of $42.56 million. The EPS of negative $0.06 also fell short of the negative $0.03 consensus. Management noted the quarter to be strong, as excluding acquisitions, core automotive and IoT AI revenue surged 88%, reflecting organic demand across its key verticals.
However, the profitability remained weak as SoundHound posted a GAAP net loss of $25 million and an adjusted EBITDA loss of $26.7 million. Gross margins were also impacted by one-time vendor charges during the quarter, although management flagged these as non-recurring.
After the quarter, the company agreed to acquire LivePerson, with the combined company expected to create one of the most comprehensive enterprise AI footprints in conversational AI, serving 25 of the Fortune 100. Management sees a $500 million revenue opportunity and is targeting 2027 revenue of at least $350 million to $400 million.
SoundHound AI, Inc. provides voice and conversational AI technology for automotive, restaurants, smart devices, customer service, healthcare, retail, financial services, and other enterprise markets.
9. Wolfspeed, Inc. (NYSE:WOLF)
Number of Hedge Fund Holders: 31
Wolfspeed, Inc. (NYSE:WOLF) is one of the AI Bubble Stocks to Short Now According to Reddit. On June 1, Wolfspeed, Inc. (NYSE:WOLF) announced an expansion in the data center market with a dedicated data center solutions team and a new regional office in the San Francisco Bay Area.
Management noted that this move is to take the company closer to hyperscalers and ODMs building next-generation AI infrastructure. Wolfspeed is one of the leaders in silicon carbide technology and noted high-voltage silicon carbide power solutions to be the core opportunity. Management highlighted that as AI computing scales dramatically, traditional data center power architecture needs to be fundamentally redesigned around higher voltages to minimize energy loss and maximize efficiency.
To lead the new data center solutions team, the company has hired two experienced executives, including Ganesh Srinivasan and Yogesh Ramadass. Ganesh Srinivasan joins as Senior Vice President, and Yogesh Ramadass as Vice President and Fellow.
The company has recently emerged from Chapter 11 after a major debt restructuring.
Wolfspeed, Inc. makes advanced semiconductors using silicon carbide and gallium nitride materials, primarily for power applications.
8. Ondas Inc. (NASDAQ:ONDS)
Number of Hedge Fund Holders: 34
Ondas Inc. (NASDAQ:ONDS) is one of the AI Bubble Stocks to Short Now According to Reddit. The stock’s short float exceeds 31%; however, analysts’ 12-month average price target suggests more than 67% upside from the current levels.
Recently, on June 2, Ondas Inc. announced that its subsidiary World View Enterprises has secured a $4.8 million, three-month contract with the US Naval Forces Southern Command and defense technology firm SMX. Management noted that the project includes deploying high-altitude balloon systems to support counter-narcotics operations and combat illegal fishing across the Eastern Pacific and Caribbean.
As per the contract, the subsidiary of Ondas will provide intelligence surveillance and reconnaissance from the stratosphere, allowing military operators wide-area visibility across vast and complex maritime environments. Moreover, this contract is based on the previous contracts under which World View showcased how stratospheric platforms can support real-time maritime surveillance and AI-enabled analytics.
That said, Ondas Inc. delivered strong fiscal Q1 2026 earnings on May 14. During the quarter, the company’s revenue hit $50.1 million, reflecting more than a tenfold increase year-over-year and more than 25% ahead of the management’s high-end guidance. The company also raised its full-year 2026 revenue target to at least $390 million, representing approximately 670% growth over 2025.
Ondas Inc. provides private wireless, drone, and automated data solutions in the United States and internationally.
7. IonQ, Inc. (NYSE:IONQ)
Number of Hedge Fund Holders: 39
IonQ, Inc. (NYSE:IONQ) is one of the AI Bubble Stocks to Short Now According to Reddit. The stock’s short float stands at around 20%; and the company posted its fiscal Q1 2026 earnings on May 6.
During the quarter, IonQ, Inc. delivered its fourth consecutive quarter of record revenue, with revenue reaching $64.7 million, reflecting a 755% year-over-year increase and 30% above the midpoint of its own guidance. Following the release, management raised its full-year revenue outlook to $260 million to $270 million, implying continued organic growth of 100% or better.
Management highlighted the sale of IonQ’s first 256-qubit, sixth-generation chip-based quantum system. The company also received its first ion trap chip samples back from fabrication, marking a shift from component testing to full system-level integration. Notably, the remaining performance obligation surged 554% year over year to a record $470 million, providing strong visibility into future revenue.
IonQ Inc. is a developer of quantum computing systems. It provides access to quantum computers via its own cloud services, as well as other cloud platforms such as Microsoft’s Azure Quantum and AWS.
6. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 39
Applied Digital Corporation (NASDAQ:APLD) is one of the AI Bubble Stocks to Short Now According to Reddit. On May 28, Applied Digital Corporation (NASDAQ:APLD) was reiterated with a Buy rating and a $66 price target by Needham analyst John Todaro.
The analyst cited strong multi-year growth visibility following conversations with the management. Todaro’s core thesis revolves around a 1.7 gigawatt development pipeline spread across three campuses, with strong power deliveries from late 2027 into 2028. He believes that this positions the company to capture AI and data center demand for an extended period.
The analyst also noted customer diversification as a key risk-reduction factor. He highlighted that by expanding beyond a single hyperscaler, the company is targeting investment-grade revenues of 70%. Based on this thesis, the analyst finds Applied Digital as an attractive stock at current valuations.
Although Applied Digital Corporation has a high short float ratio of roughly 29.9%, Wall Street’s 12-month average price target suggests more than 50% upside from the current level.
Applied Digital Corp builds and operates digital infrastructure for AI and computing companies in North America. The company provides data centers and GPU computing solutions for businesses working in AI.
5. UiPath, Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 40
UiPath, Inc. (NYSE:PATH) has fallen more than 28.5% on a year-to-date basis, and the stock’s short float has exceeded 30%, making it one of the AI Bubble Stocks to Short Now According to Reddit. Wall Street has turned cautious, with 74% of the 23 analysts covering the stock maintaining a Hold rating on the shares.
Recently, on June 1, BMO Capital lowered the price target on UiPath, Inc. from $14 to $13, while maintaining a Hold rating on the shares. Earlier on May 29, William Blair analyst Patrick McIlwee also maintained a Neutral stance on the stock without disclosing any price targets.
BMO acknowledged that the company posted a solid start to fiscal 2027, with revenue coming in ahead of expectations. However, the firm noted that net new ARR came in modestly below consensus on a constant currency basis, which tempered enthusiasm. Looking ahead, BMO believes larger AI-driven deals and strength among enterprise customers will be the key drivers of net new ARR growth.
Patrick McIlwee of William Blair also acknowledged the first quarter results to be solid, but finds limited upside at current valuation levels. He noted that the company topped revenue expectations, driven by AI-driven agentic and orchestration products’ notable strength. However, he highlighted that much of the revenue beat was driven by license revenue, which likely explains the post-earnings share price pullback despite the headline beat. He noted that although management has guided towards solid growth, the stock trades at a high multiple of forward free cash flow.
UiPath, Inc. is a firm that works in the development and provision of a software platform to automate business processes.
4. Bitdeer Technologies Group (NASDAQ:BTDR)
Number of Hedge Fund Holders: 40
Bitdeer Technologies Group (NASDAQ:BTDR) is one of the AI Bubble Stocks to Short Now According to Reddit. On June 2, Bitdeer Technologies Group (NASDAQ:BTDR) announced breaking ground on a major new facility near Fox Creek, Alberta, marking its entry into Canada with a $155 million long-term investment.
Management noted that the project combines a 101 MW natural gas power plant with approximately 100 MW of computing capacity and is designed initially for Bitcoin mining with flexibility to support AI and high-performance computing workloads in the future. A key highlight of the facility is its behind-the-fence power model under Alberta’s bring-your-own-generation framework. This model centers on drawing electricity from its on-site plant rather than the grid. This improves efficiency and reduces transmission losses. Moreover, during periods of peak grid demand, the facility can also contribute electricity back to the Alberta grid.
Bitdeer Technologies Group plans the energization process by Q2 2027, and the project is expected to create 300 construction jobs and 30 permanent positions, with priority given to local and Alberta-based hiring.
Although the stock has surged around 60% during the past month, driven by major infrastructure breakthroughs and new hardware launches, its short float remains elevated at around 34%.
Bitdeer Technologies Group is a technology company specializing in blockchain and computing, offering hash rate sharing solutions, including Cloud hash rate and one-stop mining machine hosting solutions for efficient cryptocurrency mining.
3. Figma, Inc. (NYSE:FIG)
Number of Hedge Fund Holders: 51
Figma, Inc. (NYSE:FIG) is one of the AI Bubble Stocks to Short Now According to Reddit. The stock has declined more than 38% on a year-to-date basis, and the stock’s short float has exceeded 36%. According to Reddit, many investors are betting against Figma, Inc. (NYSE:FIG) due to the looming threat from AI. However, the stock surged more than 44% in May after significantly beating Q1 revenue expectations and raising its full-year guidance.
The company posted quarterly revenue of $333.44 million in Q1 2026, reflecting a 46% year-over-year growth. It was the second consecutive quarter of accelerating growth. Management attributed the strong expansion across organizations to the rapid adoption of AI products, including Figma Make, MCP, and Figma Weave. As a result, paid customers grew 54% year over year to approximately 690,000, while larger customers spending over $100,000 annually grew 48%.
AI adoption is proving to be a meaningful driver of revenue, according to management, roughly 60% of enterprise customers use Figma Make weekly, and MCP weekly active users grew fivefold quarter over quarter. Looking ahead, the company raised its full-year 2026 revenue guidance by $55 million to approximately $1.425 billion.
Figma Inc. provides a browser-based platform for design, prototyping, and building digital experiences.
2. Nebius Group N.V. (NASDAQ:NBIS)
Number of Hedge Fund Holders: 60
Nebius Group N.V. (NASDAQ:NBIS) has surged more than 40% over the past month. However, the stock’s short float remains elevated at more than 20%, making it one of the AI Bubble Stocks to Short Now According to Reddit. Much of the gains, almost 20%, came after the company posted strong results in fiscal Q1 2026 earnings, released on May 13.
During the quarter, Nebius Group N.V. posted $399 million in revenue, reflecting 684% year-over-year growth and topping the expectations of $388.57 million. The EPS of negative $0.39 also came in ahead of the expectations of negative $0.78. The company’s AI segment drove 98% of the total revenue and grew more than 840% year-over-year to reach $390 million.
Recently, on June 2, BNP Paribas initiated coverage of the stock with a Hold rating and a $255 price target. Earlier on May 14, Compass Point had raised the firm’s price target from $150 to $260 and maintained a Buy rating on the shares.
Nebius Group NV is a technology company that provides infrastructure and services to AI builders worldwide. It offers Nebius AI, an AI-centric cloud platform that provides full-stack infrastructure, including large-scale GPU clusters, cloud services, and developer tools.
1. Core Scientific, Inc. (NASDAQ:CORZ)
Number of Hedge Fund Holders: 81
Core Scientific, Inc. (NASDAQ:CORZ) is one of the AI Bubble Stocks to Short Now According to Reddit. Recently, on May 27, B. Riley analyst Nick Giles raised the firm’s price target on Core Scientific, Inc. (NASDAQ:CORZ) to $33 from $30 and kept a Buy rating on the shares.
The analyst cited accelerating momentum in hyperscale data center contracting as one of the key reasons behind increased bullish sentiment. Nick Giles highlighted that the pace and scale of recent hyperscale deals have picked up meaningfully, thereby prompting him to update models to reflect new contract and site announcements alongside the latest quarterly results.
The firm noted that it is getting tougher to build new data centers due to NIMBY opposition, delays in connecting to the power grid, and shortages of electrical equipment. Because of this, investors are willing to pay more for companies that already have power secured and projects ready to go. The analysts believe that this is exactly where Core Scientific stands out.
Although the stock has gained more than 120% over the past year, its short float remains high at more than 22%. Wall Street appears to be bullish as 94% of the 17 analysts covering the stock maintain a Buy rating. The average 12-month price target reflects around 8% upside from the current levels.
Core Scientific Inc. operates digital Bitcoin mining and HPC infrastructure. The company uses its own fleet of computers, called miners, to earn Bitcoin for its own account and also provides hosting services for Bitcoin mining and HPC customers at US-based operational data centers.
