Short sellers have made billions betting against top AI stocks. The Nasdaq fell 0.7% due to concerns about the AI boom. Short sellers amassed $5.6 billion in just two trading sessions against AI-linked companies.

Big Tech giants like Meta, NVIDIA, Microsoft, Apple, and Alphabet have seen losses, leading to $2.8 billion in short bets profits. Other tech companies like AMD, Broadcom, Micron, and CoreWeave have also experienced significant declines.

Meta and Palantir are under pressure, with short sellers gaining $4.7 billion and $1.1 billion in profits, respectively. Recent AI bubble speculations have tempered investor enthusiasm, with concerns about limited applications outside of chatbots and search.

Despite the recent downturn, AI bulls like Wedbush’s Dan Ives remain optimistic about AI driving markets higher. Inverse ETFs like SQQQ, TECS, BERZ, and QID have gained materially, providing opportunities for those skeptical of AI stock valuations.

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Read more at Nasdaq: AI Fatigue Hits Tech Biggies: Inverse ETFs in Focus