Goldman Sachs' latest report reveals an increase in shorting activity in the U.S. stock market, driven by concerns over AI-driven speculation. The report notes that while major AI firms remain largely unaffected, weaker AI-related stocks and utility companies are attracting more short sellers. The S&P 500's median short ratio is at 2.4%, close to a five-year high, with the Nasdaq 100 at 2.5%. The Russell 2000, which focuses on small-cap stocks, has experienced the largest increase in shorting. Utilities, especially those supplying energy to AI data centers, have seen a significant rise in short interest, with American Electric Power's short ratio reaching 4%. Tesla is the most shorted stock in the U.S., followed by Palantir, Palo Alto Networks, and JPMorgan. Oracle, Intel, and GE Vernova are also newly shorted, though their positions are small relative to their market caps. The report, based on data from 982 hedge funds managing $4 trillion in equity positions, indicates cautious market positioning amid potential AI sector corrections.