10 Worst AI Infrastructure and Data Center Stocks to Buy According to Short Sellers

8. CoreWeave, Inc. (NASDAQ:CRWV)

Short Interest as of October 30:  13.46%

Year-to-Date Gain as of November 12: -31.63%

Number of Hedge Fund Holders: 71

CoreWeave, Inc. (NASDAQ:CRWV) has seen its sentiment and outlook turn sour amid mounting concerns over its debt-fueled expansion and rising financing costs.  The stock has already shed more than 30% of its market value year to date, with short interest of 13.46%, suggesting strong bearish positioning.

The underperformance comes amid growing concerns that the company’s aggressive expansion requires enormous capital investments, increasing its dependence on external financing.

In the third quarter of 2026, CoreWeave, Inc. generated $3.66  billion in revenue, more than double the $1.365 billion reported a year earlier. However, its net loss widened to $709million from $110 million, while net interest expense surged to $846 million from $310 million. The company also reported approximately $132.5 billion in revenue backlog, highlighting strong customer demand but not guaranteeing immediate cash generation.

The company’s capital-intensive business model presents another significant concern. CoreWeave spent $14.1 billion on property and equipment during the first half of 2026, compared with $3.9 billion in the same period last year.

Nevertheless, CoreWeave, Inc. could present an attractive buying opportunity for investors who believe that demand for AI computing infrastructure will continue growing. That’s because business continues to expand despite the deteriorating sentiment toward AI infrastructure stocks. Revenue has more than doubled in the past three quarters, and the company had a backlog of $104  billion as of June. Can the backlog offer long-term support?

Additionally, the 40% sell-off has significantly reduced the premium investors were paying for the stock.   Is the pullback a buy opportunity?

7. Innodata Inc. (NASDAQ:INOD)

Short Interest as of October 30: 14.73%

Year-to-Date Gain as of November 12: -30.14%

Number of Hedge Fund Holders: 25

Innodata Inc. (NASDAQ:INOD) is under immense selling pressure amid concerns about customer concentration and the sustainability of its AI-driven revenue growth.  The stock is down about 30% for the year, with short interest of 14.73%, even as the company reports strong financial results.

The biggest concern is that Innodata Inc. is not a direct AI infrastructure or data center investment. Rather, it operates in the AI services and data-engineering segment, making it more exposed to changes in customer spending priorities.

One of the biggest reasons behind the selloff is the reported reduction in business assignments from a major customer. During its Q3 earnings call, management disclosed that the termination of the customer program is expected to create an approximately $12 million revenue shortfall in Q4 2026. This creates a risk that revenue growth could temporarily slow before new customer assignments begin contributing meaningfully.

Additionally, the company’s business depends heavily on a relatively small number of large AI customers. This exposes the company to fluctuations in project volumes, contract renewals, and changes in spending priorities among major technology companies. Is Innodata one of the best small-cap stocks to buy?

Innodata Inc.’s selloff doesn’t necessarily reflect collapsing AI demand. Rather, investors are reassessing the company’s customer concentration, project-based revenue model, operating expenses, and ability to sustain rapid growth amid weakness around AI infrastructure and data center stocks.

6. Hut 8 Corp. (NASDAQ:HUT)

Short Interest as of October 30: 16.39%

Year-to-Date Gain as of November 12: 22.82%

Number of Hedge Fund Holders: 73

Hut 8 Corp. (NASDAQ:HUT) is under significant pressure heading into year-end following a disappointing third-quarter 2026 earnings report and growing investor concerns about the profitability and execution of its AI data center expansion. The stock has shed more than 50% in market value over the past six months, with short interest of 16.39% amid weakness across AI infrastructure and data center stocks.

The selloff comes as the company repositions itself as a major AI and high-performance computing (HPC) infrastructure provider. Although it has secured substantial long-term AI data center contracts, investors appear increasingly concerned about the time, capital, and execution risks involved in turning those commitments into sustainable earnings. Is Hut8 benefiting from $35B Anthropic deal?

Hut 8 Corp. reported approximately 7,859 MW of energy capacity across its development pipeline, including 1,330 MW under construction in the third quarter. Its AI data center portfolio now has approximately $26.6 billion in expected aggregate base-term contract value.

Hut 8 Corp.’s AI data center ambitions require substantial capital investment. As of September 30, it had approximately $7.4 billion in non-current loans, notes payable, and other financial liabilities. It also secured a new $1.07 billion revolving credit facility to support its expansion. Although project-level financing reduces some pressure on the parent company, the scale of its financial commitments exposes it to interest costs, construction delays, and refinancing risk.

5. Cipher Digital Inc. (NASDAQ:CIFR)

Short Interest as of October 30:  18.49%

Year-to-Date Gain as of November 12: -54.38%

Number of Hedge Fund Holders: 72

Cipher Digital Inc. (NASDAQ:CIFR) stands out as one of the worst AI infrastructure and data center stocks to buy according to short sellers, because of its aggressive capital requirements and exposure to the highly competitive AI data center market.  The stock has lost more than 50% in market value, and short interest of 18.49% as the company transitions from cryptocurrency mining toward high-performance computing (HPC) and AI infrastructure,

The transition has come at a cost as it requires substantial investment in data center construction, power infrastructure, and specialized computing capacity. These projects could weigh on cash flow, increase financing requirements, and expose shareholders to dilution if additional capital is needed.

Its September balance sheet showed approximately $5.45 billion in long-term borrowings, up from $2.71 billion at the end of 2025. Short-term borrowings added another $112.7 million. Although some financing is tied to specific data center projects, the growing debt burden increases financial risk if construction schedules slip or expected cash flows fail to materialize.

While Cipher Digital Inc. reported third-quarter 2026 revenue of approximately $27 million and negative adjusted EBITDA of $10 million, these figures remain relatively small compared with the scale of its infrastructure investments. Explore why Morgan Stanley is optimistic about Cipher.

Nevertheless, Cipher Digital Inc. still has growth opportunities. It has already revealed that its expanded Barber Lake lease has increased contracted revenue to approximately $9.1 billion over 20 years. It also boasts of major customers, including Amazon Web Services, and a development pipeline of approximately 5.9 GW.