The tech sector remained the most shorted sector for the third consecutive month in February 2025, with major companies like Apple (AAPL), IBM (IBM), Super Micro Computer (SMCI), SoFi Technologies (SOFI), and Texas Instruments (TXN) topping the list, according to Hazeltree’s latest Shortside Crowdedness Report.
Tech Stocks Under Heavy Short-Seller Pressure
The Hazeltree Shortside Crowdedness Report, which tracks approximately 15,000 global equities, revealed that tech stocks continue to be prime targets for short sellers in the Americas region. This marks the third consecutive month that tech has dominated the list, reflecting ongoing market uncertainty and bearish sentiment around the sector.
Super Micro Computer (SMCI) Sees Surging Short Interest
One of the standout names in February’s report is Super Micro Computer, Inc., which ranked as the second most shorted large-cap security with a Hazeltree Crowdedness Score of 91.
- Institutional supply utilization for SMCI reached 53.27%, marking the third straight month it held the highest utilization in the large-cap category.
- Despite strong demand for AI infrastructure boosting Super Micro’s fundamentals, short sellers appear to be betting on a potential pullback after the stock’s substantial gains in recent months.
Apple, SoFi, and IBM: Top Targets for Shorts
Alongside Super Micro, heavyweights like Apple, IBM, and SoFi Technologies also landed on the list of the most shorted large-cap stocks.
- Apple (AAPL): With declining iPhone sales in China and increased regulatory scrutiny, the tech giant has faced growing bearish sentiment.
- SoFi Technologies (SOFI): The fintech company’s short interest reflects concerns over rising competition and profitability challenges in the crowded digital banking space.
- IBM (IBM): Despite its investments in AI and cloud, IBM’s inclusion on the list indicates that some investors remain skeptical about the company’s growth trajectory.
Energy and Small-Cap Stocks Face Strong Shorting
Outside the tech sector, Chevron Corporation (CVX) maintained its spot as the most shorted large-cap stock for the second month in a row with a crowdedness score of 99.
- In the small-cap category, Wolfspeed, Inc. (WOLF) remained the most shorted security for the seventh consecutive month with a score of 99.
- Enovix Corporation (ENVX) had the highest institutional supply utilization in the small-cap group, reaching 85.91%.
Tech Sector in Transition: Layoffs and Job Postings
According to Tim Smith, Managing Director of Data Insights at Hazeltree, the February report highlights a tech sector in transition rather than decline.
- While the sector continues to experience layoffs, the pace is slowing.
- Simultaneously, there has been a surge in tech job postings and low unemployment, signaling that companies are recalibrating their talent strategies amid shifting economic conditions.
