13 Best Short Squeeze Stocks to Invest In

In this article, we will take a look at the 13 Best Short Squeeze Stocks to Invest In.

US markets climbed to record highs, wrapping up a solid month, as President Trump announced he will soon make a decision on the Iran deal. The S&P 500 posted its ninth consecutive weekly gain in the final week of May, the longest streak of wins since 2023. Markets are hungry for relief on the US-Iran war stage, as the blockage of the Strait of Hormuz adds to soaring prices and raises worries regarding the Federal Reserve’s future moves around interest rates.

On May 28, Fundstrat’s Tom Lee and Brian Belski, founder and CEO of Humilis, appeared on CNBC’s Closing Bell to analyze the market’s recent performance. Lee stated that earnings had greatly outperformed forecasts, accounting for most of the market’s recent rise. Investors predicted S&P 500 earnings of around $70 per share in Q1, but outcomes seem closer to $80 per share. According to Lee, the $10-per-share beat, when annualized, equates to significant upside for the index and helps justify much of the run since April.

That said, Belski pointed out that investors should be concerned if earnings growth among large-cap companies stagnates, even if growth remains healthy by historical standards.

Our Methodology

To compile our list of the best short squeeze stocks, we made use of stock screeners to identify stocks with significant short interest. From that list, we chose stocks with a short float of 20% or above. These stocks are also popular among analysts and elite hedge funds.

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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

13. Tempus AI, Inc. (NASDAQ:TEM)

Tempus AI, Inc. (NASDAQ:TEM) ranks among the best short squeeze stocks to invest in. Following the company’s first-quarter results, H.C. Wainwright reduced its price target for Tempus AI, Inc. (NASDAQ:TEM) to $64 from $95 while retaining a Buy rating on the company’s shares. Tempus AI, Inc. (NASDAQ:TEM) posted total revenue of $348.1 million in Q1, up 36.1% year-over-year and above H.C. Wainwright’s expectation of $345.3 million.

On the other hand, the company reported a net loss of $125.9 million, or $0.71 per diluted share, which was greater than H.C. Wainwright’s expected loss of $84.7 million. The firm stated that the operating loss has increased in comparison to previous quarters.

Tempus AI, Inc. (NASDAQ:TEM) expanded a number of partnerships during the quarter, including its collaboration with Gilead to offer enterprise-wide accessibility to its AI-driven Lens platform and a multi-year strategic partnership with Merck to expedite biomarker discovery and development. In addition, the company revealed results from the ALERT trial with Medtronic, which showed that its AI-driven EHR alerts improved life-saving heart valve operations by 40%.

Tempus AI, Inc. (NASDAQ:TEM) is a healthcare technology company that uses artificial intelligence to advance precision medicine.

12. Lyft Inc. (NASDAQ:LYFT)

Lyft Inc. (NASDAQ:LYFT) ranks among the best short squeeze stocks to invest in. On May 15, DA Davidson reduced its price target for Lyft Inc. (NASDAQ:LYFT) to $14.50 from $19, retaining a Neutral rating on the company. The firm revised its financial model for the company following first-quarter fiscal 2026 earnings, which were released on May 7.

DA Davidson’s Lyft Inc. (NASDAQ:LYFT) revenue forecast for 2026 stayed mostly unchanged. That said, the firm reduced its 2026 adjusted EBITDA expectation to $694.3 million from $714.9 million due to revisions to operating expense modeling for the latter half of the year.

Meanwhile, on May 14, Bernstein SocGen Group maintained its Market Perform rating and $16 price target for Lyft Inc. (NASDAQ:LYFT) following talks with the company’s executives. The talks focused on autonomous vehicles and Lyft’s position and pricing power as the technology spreads among consumers.

The company’s management highlighted the advantages of a hybrid network and stated that its approach centers on developing closer ties with a smaller group of partners.

Lyft Inc. (NASDAQ:LYFT) operates a peer-to-peer ridesharing marketplace in the U.S. and Canada. Its platform provides a ridesharing marketplace that connects drivers with riders, a car rental program for drivers, and a network of shared bikes and scooters in various cities to meet riders’ needs for short trips.

11. Immunovant, Inc. (NASDAQ:IMVT)

Immunovant, Inc. (NASDAQ:IMVT) ranks among the best short squeeze stocks to invest in. On May 21, H.C. Wainwright boosted Immunovant, Inc. (NASDAQ:IMVT)’s price objective to $40 from $35, keeping a Buy rating on the company’s shares. The firm noted high response rates from its Phase 2 rheumatoid arthritis trial.

The trial showed that past exposure to numerous advanced medicines did not significantly reduce treatment benefit.

According to H.C. Wainwright, this shows that FcRn acts differently from JAK/TNF-directed treatments. According to the firm, RA response rates often fall as patients go through various medications, especially after JAK inhibitors.

Given the favorable readout, H.C. Wainwright upgraded the chance of success for IMVT-1402 in rheumatoid arthritis from 30% to 55%, as well as its EV sales multiple from 9x to 10x.

The same day, BofA Securities boosted its price objective for Immunovant, Inc. (NASDAQ:IMVT) from $32 to $43, keeping a Buy rating on the stock. The firm raised its peak sales forecast for IMVT-1402 to $6.8 billion from $5.5 billion, citing higher contributions from Graves’ disease and severe rheumatoid arthritis.

Immunovant, Inc. (NASDAQ:IMVT) develops treatments for autoimmune diseases. Its product pipeline includes IMVT-1402, which is a novel fully human monoclonal antibody targeting the neonatal fragment crystallizable receptor (FcRn).

10. Intuitive Machines, Inc. (NASDAQ:LUNR)

Intuitive Machines, Inc. (NASDAQ:LUNR) ranks among the best short squeeze stocks to invest in. On May 27, Cantor Fitzgerald reaffirmed its Overweight rating and $43 price target for Intuitive Machines, Inc. (NASDAQ:LUNR). The company reported first-quarter revenue and gross profit margins slightly below expectations, but posted a year-over-year increase following the Lanteris acquisition, completed in mid-January.

Intuitive Machines, Inc. (NASDAQ:LUNR) reported that it was one of 14 recipients of the Andromeda multi-year award, chosen by the U.S. Space Force’s Space Systems Command. The 10-year agreement could be worth up to $6.24 billion in total, with a starting value of up to $1.84 billion.

Cantor Fitzgerald also stated that it believes that the company’s acquisition of Lanteris will improve its profitability and work well with its current business approach. Moreover, the firm mentioned potential triggers such as the CLPS CP32 award, due in the third quarter of 2026; the IM-3 Mission and Satellite Launch, anticipated in the fourth quarter; and probable Golden Dome contracts in the latter half of 2026.

Intuitive Machines, Inc. (NASDAQ:LUNR), founded in 2013 and headquartered in Houston, Texas, is an American space exploration and infrastructure company focused on commercial and government lunar missions. The company specializes in robotic payload delivery to the Moon, autonomous lunar surface systems, and space communications infrastructure.

9. TeraWulf Inc. (NASDAQ:WULF)

TeraWulf Inc. (NASDAQ:WULF) ranks among the best short-squeeze stocks to invest in. On May 14, Jefferies began coverage on TeraWulf Inc. (NASDAQ:WULF) with a Buy rating and a price target of $28. The firm characterizes TeraWulf Inc. (NASDAQ:WULF) as a power-focused digital infrastructure operator with a scalable strategy to acquire brownfield industrial sites with reliable power and transmission networks and transform them into AI data centers.

Meanwhile, on May 11, Needham boosted TeraWulf Inc. (NASDAQ:WULF)’s price target to $28 from $22, retaining a Buy rating on the company’s shares. The firm mentioned the company’s first-quarter revenue of $34 million, which was consistent with Needham’s $35 million projection.

Revenue increased 117% quarter-over-quarter to $21 million from HPC lease revenue, which was largely offset by a 50% quarter-over-quarter decrease in mining revenue to $13 million. However, the adjusted EBITDA of negative $4.1 million fell short of both Needham’s $2.5 million projection and management’s previously indicated number of $0 to $3 million.

TeraWulf Inc. (NASDAQ:WULF) operates and owns data center infrastructure specifically designed for HPC and Bitcoin mining. It uses environmentally sustainable and zero-carbon energy sources, such as hydroelectric and nuclear power, to power its Bitcoin mining and other operations.

8. Core Scientific Inc. (NASDAQ:CORZ)

Core Scientific Inc. (NASDAQ:CORZ) ranks among the best short squeeze stocks to invest in. In response to Core Scientific Inc. (NASDAQ:CORZ)’s announcement of about 1.2 gigawatts of approved power capacity for the current year, BTIG increased its price objective for the stock on May 13 from $23 to $33 with a Buy rating.

Core Scientific Inc. (NASDAQ:CORZ) unveiled a new 430-megawatt facility in Hunt County, Texas, with the development increasing Core Scientific’s power infrastructure in the Dallas metropolitan area to roughly 825 megawatts.

Moreover, on May 7, Needham boosted its price target for Core Scientific Inc. (NASDAQ:CORZ) to $29 from $23 with a Buy rating after the company’s Q1 earnings announcement. Core Scientific announced revenue of $115.2 million, which surpassed Needham’s forecast of $106.9 million. The company also revealed a deal to acquire Polaris DS, which is currently contracted for 440 megawatts of gross power.

Core Scientific Inc. (NASDAQ:CORZ) 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.

7. Figma Inc. (NYSE:FIG)

Figma Inc. (NYSE:FIG) ranks among the best short squeeze stocks to invest in. On May 15, Piper Sandler reduced its price objective for Figma Inc. (NYSE:FIG) to $30 from $35 while keeping an Overweight rating on the company’s shares. The firm cited Figma’s first-quarter results, which showed 46% year-over-year revenue growth and a 5.5% revenue beat.

Figma’s second-quarter revenue growth projection of 40% year-over-year came in 9 percentage points higher than expected. Management also increased the fiscal 2026 revenue growth midpoint to 35% year-over-year, up from around 30% previously.

The same day, Stifel cut its price objective for Figma Inc. (NYSE:FIG) from $30 to $25 while keeping a Hold rating on the company, citing a wait-and-see approach regarding Figma’s AI products. Figma Inc. (NYSE:FIG) disclosed high uptake and usage for its AI products, adding that the implementation of credit restrictions in mid-March led to early growth gains from both credit usage and seat upgrades.

Figma Inc. (NYSE:FIG) provides a browser-based platform for design, prototyping, and building digital experiences.

6. Summit Therapeutics Inc. (NASDAQ:SMMT)

Summit Therapeutics Inc. (NASDAQ:SMMT) ranks among the best short squeeze stocks to invest in. On May 22, Cantor Fitzgerald restated its Overweight rating for Summit Therapeutics Inc. (NASDAQ:SMMT). The firm addressed concerns about the HARMONi-3 trial, which is evaluating ivonescimab in first-line squamous non-small cell lung cancer.

The trial failed to meet an interim progression-free survival threshold, increasing investor doubts regarding its efficacy in comparison to data from HARMONi-6, a China-exclusive trial.

Cantor Fitzgerald reported that medical professionals were less deterred by the interim progression-free survival shortfall. The expert opinion was influenced by the firm’s low alpha spend and the fact that the analysis was performed very early.

Meanwhile, H.C. Wainwright downgraded Summit Therapeutics Inc. (NASDAQ:SMMT) to Neutral from Buy, noting competition from Merck’s sacituzumab tirumotecan results. The firm stated that sacituzumab tirumotecan, coupled with pembrolizumab, had an immature overall survival hazard ratio of 0.55, which might place strain on Summit’s ivonescimab if the trend continues with prolonged follow-up.

Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical firm. The company’s main product, Ridinilazole, is an orally administered small-molecule antibiotic now in Phase III clinical trials to treat CDI.

Click to continue reading and see the 5 Best Short Squeeze Stocks to Invest In.

Disclosure: None. Follow Insider Monkey on Google News.