Ondas tops technology stocks in short interest; Ubiquiti sees the lowest exposure

What happened

The technology sector fell significantly in October as rising borrowing costs raised concerns that AI infrastructure spending could slow. Ondas topped the most shorted technology stocks with 44.50% short interest, while Ubiquiti had the lowest at 0.58%.

Confirmed

Global impact / market context

High short interest means many investors bet a stock will fall, which can amplify price swings if they must buy shares to close those bets. The divide shows investors are cautious on smaller hardware and crypto-linked names but comfortable with mega-caps like Apple and Microsoft.

Analyst inference

Rising borrowing costs make debt-funded AI infrastructure projects more expensive, so investors are positioning for a possible slowdown in spending. That pressures companies dependent on the investment boom, while firms with little short interest, such as Ubiquiti and Arista Networks, face less bearish positioning.

Analyst inference

What to watch

1. Ondas holds 44.50% short interest, MARA Holdings 28.98%, TeraWulf 25.68%, Core Scientific 23.85% and Enphase Energy 22.23%, all above $2 billion in market value. Confirmed
2. Watch whether borrowing costs keep rising, since more expensive loans could further delay or shrink AI infrastructure projects and pressure revenue at hardware and software companies tied to that spending. Proposed
3. A sharp rally in heavily shorted names could force short sellers to buy shares to close positions, which means covering, potentially amplifying price moves and raising costs for investors still betting against them. Analyst inference

Evidence

• seekingalpha.com