Short-sellers gain $30bn betting against AI stocks
Short-sellers betting against US artificial intelligence stocks have made over $30bn following President Trump's crushing midterms defeat, with gains reaching about $32.8bn by Friday lunchtime in New York. Bearish investors targeting 40 major AI stocks saw paper profits of roughly $35bn on Thursday, their second-best day since 2019, as trillions were wiped off Silicon Valley valuations amid fears an empowered Democratic Party will rein in AI development. US tech stocks recovered Friday, costing short-sellers about $11.7bn. Analysts are split on the sell-off, with some calling it a "golden" buying opportunity while others urge caution. Notable AI sceptics include Michael Burry, and Anthropic investors suggest its valuation may need cutting to about $1trn from a $1.5trn target.