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Just For You 3 Big Short Interest Names With Bullish SetupsWritten by Ryan Hasson. Published 9/22/2025. 
Key Points - Market momentum remains strong, with speculation rising but not at extreme levels, creating room for further upside.
- HIMS, DLO, and TEM each combine bullish technical setups with elevated short interest, making them prime candidates for potential squeezes.
- While speculation may eventually cool, the current backdrop supports momentum, and these names stand out as high-upside potential opportunities.
Last week, several high short-interest, momentum-driven stocks broke out strongly, riding a wave of speculation as the broader market hit fresh highs. While such euphoria naturally raises questions about sustainability, history shows that momentum can carry much farther than skeptics expect. As Warren Buffett famously said, "The market can remain irrational longer than investors can stay solvent." While many are busy chasing the usual AI trends, a bigger opportunity is quietly brewing—and most are missing it. Imagine a major shift in how and where AI is built, opening up incredible wealth opportunities for those in the know.
I've found 9 AI companies primed to lead this change. These aren't the tired "AI hype" stocks; they're companies with real US operations, proven revenue growth, and deep AI integration. I've put all the details in a FREE report: "Top 9 AI Stocks For This Month." Currently, the Fear & Greed Index sits at 62—indicating greed but not yet extreme levels—and the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) holds a 14-day RSI of 71, stretched but not historically overbought. In other words, momentum still has room to run. Against this backdrop, three heavily shorted stocks stand out with technical setups that could fuel further upside if sentiment remains supportive. HIMS: A Retail Favorite on the Edge of a Breakout This year, Hims & Hers Health (NYSE: HIMS) has been under intense scrutiny, drawing regulators' attention over advertising practices and the telehealth distribution of GLP-1 weight-loss drugs. Just last week, the FDA posted over 100 letters to companies—Hims & Hers among them—as part of a broader crackdown on pharmaceutical corporations. Despite those headwinds, the stock's performance has been explosive: shares are up 139% year-to-date and 259% over the past twelve months. Technically, HIMS has been consolidating since May between roughly $40 support and $65 resistance. Last Friday, shares pushed toward $60, hinting at a possible retest of that upper boundary. What makes this setup especially compelling is the 38% short interest, representing more than 74 million shares sold short. A decisive break above $65 could force a powerful squeeze, adding fuel to an already strong rally. DLO: Strong Earnings Meet Heavy Shorts DLocal Limited (NASDAQ: DLO), a fintech specialist in cross-border payments across emerging markets, had flown under the radar until its latest earnings report. The company beat both revenue and earnings estimates handily, prompting a breakout from a long base. Shares are now up nearly 40% year-to-date. Wall Street has noticed, raising the consensus price target from $12.45 three months ago to $14 and issuing multiple upgrades. Beyond its fundamentals, DLO carries a significant 23.4% short interest, or roughly 15 million shares. Trading just above $15, the stock faces resistance around $16—if it can clear that gap and hold the level, it could spark another wave of momentum and even trigger price discovery. TEM: A High-Short AI Healthcare Play Tempus AI (NASDAQ: TEM) has quietly become one of 2025's top performers, with shares up over 160% year-to-date. The surge reflects its pioneering use of artificial intelligence and machine learning in precision medicine. Tempus excels in oncology, offering genomic profiling, digital pathology, and data-driven insights to support personalized cancer care. Now, TEM is testing a key inflection point just below its all-time high near $91. What amplifies this setup is its 25% short interest, setting the stage for a squeeze if the stock decisively clears resistance. With the AI-driven healthcare narrative still in its early innings and shorts inclined to cover, TEM may be on the cusp of another powerful leg higher. Momentum Remains Firmly Intact The broader market may look stretched, but momentum is still building, and heavily shorted names can be the biggest beneficiaries in this environment. HIMS, DLO, and TEM each combine robust technical setups with elevated short interest—ingredients for potential squeezes if bullish sentiment persists. Although no rally lasts forever, the current backdrop remains supportive. For investors watching the tape, these three stocks offer some of the most intriguing bullish setups in today's market.
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