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I've been watching the hype about artificial intelligence for a few weeks now.
We remember the great outlook on the AI market from Nvidia and the subsequent rise of over 25% (big up gap). I think very few people had this on their radar. Don't forget NVIDIA is a heavyweight with a market cap over 1T.
For such a sharp increase as with NVIDIA, it needs a lot of ammunition and this is not a stock with high short interest.
So my thoughts now, why should the AI hype already depart again? We see some new app or potential application for AI almost every day. So the trend is still going full steam ahead.
That's why I think C3.ai could be a great opportunity for a shot squezze, no matter if the valuation is already at 4.3B, this market is currently not a fundamental game (not at this early stage).
C3.ai has a nice chart and an SI over 37% combined with the AI trend it is only a matter of time before the shorties get grilled. A good outlook and the stock starts to rise again.
Do not forget, the earning season is just around the corner and many companies will certainly speak out regarding the AI topic.
I am invested with call options, but this is not a recommendation to act. It is just my thoughts on the subject and possible ideas for a potential trade.
Best regards from Switzerland and have a relaxing weekend!
PS: The same thing happened recently at CVNA, over 50% in one day.