10 Worst Artificial Intelligence Stocks Under $50 According to Short Sellers

3) Bitdeer Technologies Group (NASDAQ:BTDR)

Share Price as of September 20: $7.13

Short % of Float (As of August 30): 13.40%

Number of Hedge Fund Holders: 15

Bitdeer Technologies Group (NASDAQ:BTDR) works as a technology company for blockchain and computing. Recently, Bitdeer AI announced the roll-out of its advanced AI Training Platform.

The short sellers continue to remain bearish on Bitdeer Technologies Group (NASDAQ:BTDR) mainly because of its weaker-than-expected financial performance in 2Q 2024, with revenue sitting at $99.2 million. This remained below the consensus estimate of $108.4 million. The company has been facing challenges in several key areas, such as cloud hash rate services and general hosting operations.  Bitdeer Technologies Group (NASDAQ:BTDR)’s performance might also be impacted as a result of operational inefficiencies and increased competition.

The company’s cloud hash rate revenue fell by 33% in the quarter, as broader market conditions led to changes in the number of active orders and a decline in electricity subscriptions amid reduced margins due to the Bitcoin halving event in April.

That being said, Wall Street analysts believe that Bitdeer Technologies Group (NASDAQ:BTDR) should be aided by strategic direction in the semiconductor space along with potential contribution to the infrastructure of next-gen AI and HPC data centers. Market experts are optimistic about the company’s advancements in SEAL bitcoin mining chips and SEALMINER mining rigs. Bitdeer Technologies Group (NASDAQ:BTDR)’s strategic moves are focused on enhancing mining capabilities and expanding its market presence with the help of its mining equipment, which should continue to drive revenue growth.

Wall Street remains optimistic about the company’s expansion plans. Bitdeer Technologies Group (NASDAQ:BTDR) announced growth plans, with several expansions expected through 2025 end. It secured a 570-megawatt (MW) lease agreement with the Monroe County Port Authority, aiding its power capacity.

Analysts at Benchmark reaffirmed a “Buy” rating on the shares of Bitdeer Technologies Group (NASDAQ:BTDR), setting a price target of $16.00 on 13^th August. Of the 912 elite money makers in our database, 15 hedge funds owned stakes in the company.