📉 Bears Are Piling Into These Stocks — Smart or Dangerous?

US stocks mostly edged higher on Wednesday as investors awaited earnings from NVDA, looking for fresh confirmation that AI demand remains strong despite persistent inflation concerns. The S&P 500 rose 0.3%, and the Nasdaq gained 0.5%, while the Dow traded flat after Tuesday’s tech-led decline and surge in Treasury yields.

Markets expect significant volatility in Nvidia shares following its results, with investors closely watching for signs that Big Tech companies are continuing to spend heavily on AI infrastructure. Meanwhile, concerns over sticky inflation, elevated bond yields, and uncertainty around future Federal Reserve rate decisions continued to weigh on growth stocks.

Geopolitical tensions involving Iran also remained in focus, adding to inflation worries, while strong quarterly results from retailers including TGT and LOW provided some positive momentum for the market.

Top Movers: Under $10 

Capstone Holding Corp (CAPS) is up 20.64% today to trade at the current level of $0.37. This comes after the company reported strong Q1 2026 results, with revenue up 60% year-over-year to $12.6 million and gross profit up 124% to $3.0 million.

Jupiter Neurosciences Inc (JUNS) zoomed 14.31% in today’s trade to $0.37 after signing a term sheet to acquire exclusive, permanent U.S. rights to ALA-002, the lead drug candidate from PharmAla Biotech Holdings Inc., a leader in developing novel MDXX-class molecules.

In current trading, MetaVia Inc (MTVA) stock is at $2.91 after announcing the publication of new preclinical research supporting the anti-fibrotic potential of vanoglipel (DA-1241), a novel G-Protein-Coupled Receptor 119 (GPR119) agonist, in the peer-reviewed, international journal, Biomolecules & Therapeutics.

GCL Global Holdings Ltd (GCL) rose 70.54% in the early hours of today's trading to move at $0.74 after announcing expanded strategic investment from ADATA Technology to accelerate global entertainment and digital growth.

In the current trading session, Functional Brands Inc (MEHA) jumped 18.65% to $0.08 over a previous close of $0.07 following the filing of 8-K form with the SEC.

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Ex-Dividend Stocks

Allient Inc (ALNT) is about to trade ex-dividend tomorrow, meaning that investors who buy the stock after tomorrow will not be eligible for the next dividend payment. The company's next dividend payment will be $0.04 per share. It has fixed May 21 as the record date for the same and will pay the actual dividend on June 04. Last year, the company distributed a total of $0.12 to its shareholders. Based on the last year's worth of payments, ALNT has a trailing yield of 0.20% on the current stock price of $61.0.

Another stock that is shelling out dividends tomorrow is Applied Materials Inc (AMAT), having a market capitalization of $322.93B. It will pay a dividend of $0.53 per share, the payment date of which is June 11. Currently, the stock is trading at a trailing dividend yield of 0.45%.

Shares of Cognex Corp (CGNX) will be the talk of the stock market on Thursday as the stock will turn ex-dividend. The company's next dividend payment will be $0.09 per share, and in the last 12 months, it paid a total of $0.33 per share. Last year's total dividend payments show that CGNX has a trailing yield of 0.54% on the current share price of $60.65.

LKQ Corp (LKQ) is also set to go ex-dividend tomorrow. The next dividend payment from LKQ will amount to $0.3 per share. May 21 has been designated as the record date for this dividend, with the actual payout scheduled for June 04. In the previous year, LKQ distributed a total of $1.20 to its valued shareholders. Considering the cumulative dividend payments from last year, the trailing yield for LKQ stands at 4.89% based on the current stock price of $24.54.

Microsoft Corp (MSFT) will be paying out a dividend of $0.91 per share to shareholders holding their shares as of the close of business hours on the record date of May 21. Over the past 12 months, MSFT has paid out a total of $3.48 per share in dividends. Based on the total dividends paid out last year, MSFT boasts an impressive trailing yield of 0.83% on the current share price of $417.42.

Crypto Market Highlights

• AI-powered crypto trading assistant Bankr disabled transactions after detecting an attacker who accessed at least 14 wallets, with some users reportedly losing up to $150,000 in crypto assets.

• Yorkville America withdrew several crypto ETF applications tied to Truth Social after revising its product strategy.

• Prediction market platform Polymarket introduced a new category focused on private companies, enabling users to trade on pre-IPO market questions and improving price discovery in opaque private markets.

• A coalition of privacy and internet freedom groups led by The Tor Project launched a crypto fundraising campaign to support censorship-resistant digital infrastructure initiatives.

• The Bank of England is increasing its focus on digital money, with Deputy Governor Sarah Breeden highlighting tokenization as a way to lower costs, accelerate settlement times, and boost market competition.

Most Shorted Stocks

Enphase Energy Inc (ENPH) was one of the most shorted stocks as of latest short interest figures, with 23.65% short interest. The days to cover ratio, a measure of how long it would take for all the short positions to be covered based on average trading volume, is 3.8. This represents a change of 3802935 shares, which corresponds to a 14.37% increase in short interest. The total value of the shares held short is estimated to be around $1.42 billion. The average daily volume stands at 6.52M shares, and the market capitalization of the company is $6.16B.

The 4D Molecular Therapeutics Inc with the symbol FDMT currently has a short interest of 24.90%. The short interest has changed by 470765 shares. The days to cover ratio stands at 17.9. The estimated value of the shares held short is approximately $100.72 million. On an average day, 740.12K shares are traded, with the company's market capitalization totaling $439.38M.

For the stock Lovesac Company (LOVE), the current short interest is at 25.95%. This represents a significant short interest change of -274902 shares, corresponding to a short interest percentage decrease of -7.57%. The days needed to cover the short positions amount to 12.5. The approximate worth of the shares held short is $50.96 million.

With the symbol ARCT, the stock currently has a short interest of 27.57%. The short interest change is 189751 shares, compared with a short interest percentage change of 3.04%. It would take approximately 20.2 days to cover all the short positions. The shares' short value is estimated to be around $22.46 million. The company boasts an average daily volume of 477.64K shares, contributing to a market capitalization of $190.15M.

The stock FUBO has a current short interest of 87.55%. The short interest percentage has experienced an increase of -7.24%, while there was a change of -517,050 shares in short interest. The ratio indicating the time required to cover short positions is 4.3. The calculated worth of the shorted shares amounts to around $81.73 million. Trading activity averages at 1.81M shares per day, while the company's market capitalization stands at $997.54M.

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AI Stocks to Watch

According to our ST Score evaluation, Tempus AI Inc (TEM) emerges as a high-quality stock in the AI industry, attaining an impressive score of 55. The stock's performance, financial strength, stock sentiment, and forecast are strong. Additionally, it is neutral in terms of profitability, growth, and Piotroski Score.

Our ST Score also classifies Monolithic Power System Inc (MPWR) as a high-quality AI stock today, presenting a Score of 55. The stock has strong fundamentals in terms of profitability and financial strength. The performance, growth, stock sentiment, Piotroski Score, and forecast are neutral.

Another stock in the category, Iron Mountain Inc (IRM) has the ST Score of 54, which means that the stock carries the potential for higher returns. The stock is strong in financial strength and Piotroski Score, but weak in profitability and growth. Performance, stock sentiment, and forecast suggest a neutral outlook.

Okta Inc (OKTA) stock has the ST Score of 56, which implies that the AI company has a high probability of beating the market. The stock's strengths lie in its profitability, performance, and Piotroski Score, but its weaknesses are in its growth, stock sentiment, and forecast. However, it shows a neutral outlook in financial strength.

UiPath Inc (PATH) currently has the ST Score of 56, which signifies a huge upward potential. The AI stock's strong points are its profitability, financial strength, and Piotroski Score. The stock's performance, growth, stock sentiment, and forecast indicate a neutral outlook.

That's it for today. Thanks for reading. Good luck out there!

Best Regards,

Stocks Telegraph Team

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