Short interest is a powerful market force that can not only limit gains but cause stock prices to decline, but not always. Sometimes, even short sellers get things wrong. Companies that appear troubled actually aren’t, and are setting up the underlying stock for strong rises.
The higher the stock price rises above the short selling point, the greater the short seller’s losses and the greater the motivation to close the position. If short interest is high enough, as is the case with the tech stocks on this list, a scramble to buy shares and close positions can lead to a supply shortage that sends stock prices skyrocketing.
SoundHound AI: Short coverage is already underway
SoundHound AI today
As of 10/08/2025 at 04:00 PM ET
- 52 week range
- $4.56
▼
$24.98
- Price target
- $14.36
Price action in SoundHound AI NASDAQ:SOUN The arrow indicates that short covering operations are already underway. Price action is up 200% from the 2025 lows and 50% since the start of Q3, after several important resistance targets were breached. It is likely to trend higher due to factors including strong deal pipeline, revenue growth, profitability, and… Positive analyst sentiment trends. They include increased coverage, upgrades, a moderate buy rating, and an increased target price.
Consensus lags the stock price as of early October, but the trend points to a higher range, which will likely rise after the third-quarter earnings report. Short interest in late September was over 30%, below the recent peak but high enough to trigger a short squeeze and/or keep short covering high.
Tempus AI: Exceed critical resistance
Tempus AI Today
As of 10/08/2025 at 04:00 PM ET
- 52 week range
- $31.36
▼
$103.42
- Price target
- $71.83
Your tempus Nasdaq: TEMwhose short interest exceeded 27% in September, may see this Accelerate the uptrend Due to short covering, its price crossed a critical resistance point. This point aligns with historical highs and sets the market up for a significant rally, which could leave the market in the $130 to $140 range.
The impetus for the move could come with the third-quarter earnings report, which is expected to include another 80% increase in revenue and positive guidance updates. For now, the company’s growth is expected to slow, but will likely be cautious. The company is moving from a pure services company to an AI infrastructure provider for healthcare, an as-yet untapped sub-industry of AI.
Improved market support for OpenDoor technologies
Open Door Technologies Today
Open door techniques
As of 10/08/2025 at 04:00 PM ET
- 52 week range
- $0.51
▼
$10.87
- Price target
- $1.26
Open door techniques Nasdaq: Open Short interest approached 27% in late September as short sellers sold the rally to limit gains. but, Market support for this stock is risingas evidenced by Jane Street’s recent purchases. It has a stake of approximately 6% of the stock, and other institutions are also buying.
Institutional activity was bullish in the second and third quarters, pushing institutional interest to over 62% even as analyst sentiment deteriorated. The catalyst for the short squeeze could be strong reporting in the third quarter; Analysts have set the bar lower, with 83% cutting their estimates during the quarter, and the consensus is forecasting a significant contraction despite recent strength in housing data. Existing home sales rose in September as mortgage rates fell.
AST Space Mobile is about to unleash revenue power
AST SpaceMobile today
As of 10/08/2025 at 04:00 PM ET
- 52 week range
- $17.50
▼
$91.41
- Price target
- $45.27
AST Space Mobile Nasdaq: ASTs Short interest accrues 20% due to pre-revenue condition and execution risk. However, the company’s updates reveal that its satellite network is growing rapidly, and coverage expectations are strong, indicating that The fears were misplaced. The important detail is that coverage is increasing with each launch, which puts it on track to start honoring contracts, billing, and generating revenue, which will be strong.
The company has contracts with most major mobile phone carriers, as well as the US government, confirming its position in the telecommunications industry. The consensus expects ASTS revenue to grow more than 2,500% in the third quarter, maintain a four-digit pace for four quarters, then slow to double-digit but still overextended in the next few years.
Etsy is building an artificial intelligence platform for consumers
Etsy today
As of 10/08/2025 at 04:00 PM ET
- 52 week range
- $40.05
▼
$76.51
- P/E ratio
- 56.56
- Price target
- $58.73
It’s still in the early stages, but Etsy Nasdaq: Etsy Working to become Artificial intelligence platform for e-commerce. Its latest move is a deal to include ChatGPT in its payment process, enabling a seamless experience for consumers. Analyst response to the news has been favorable, including an increase in their price target from BTIG, putting this highly shorted stock above a critical resistance point.
A move to BTIG’s $81 target would put this market into an institutional-backed technical reversal. MarketBeat data reveals that institutions, which own nearly 100% of the stock, have been buying into 2025 and providing strong support near the price points in early October.
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