Resonac (4004 JP) has surged 60% YTD, becoming a top Nikkei performer due to its "AI-Adjacent" role, providing thermal and packaging materials for chips.

Despite the rally, short interest nearly doubled recently as investors bet against the meteoric rise; however, these shorts may cover as the price climbs.

With a squeeze risk score of 75 and a crowded score of 57, the stock is under significant technical pressure, as short sellers face mounting losses.

Resonac Holdings (4004.JP) is currently the third-best performer in the Nikkei 225 YTD, up 60% with a market capitalization of approximately $12B USD. While historically focused on chemical products and industrial metals, Resonac has evolved into a key AI-Adjacent play.

The company's ~60% climb is driven by expectations of explosive growth in its semiconductor materials business—specifically in advanced packaging and thermal materials critical for AI and high-performance computing chips.

The rally also reflects broader semiconductor sector momentum and valuation expansion; the stock has rebounded from prior lows, propelled by optimism around AI-driven server demand rather than trailing earnings growth.

However, the bears have been remarkably persistent. Our Real-time Short Interest data shows that total shares shorted almost doubled at the end of last year.

With the Crowded Shorts Data score at 57, this 60% price increase has triggered heavy mark-to-market losses for bears, causing the Short Squeeze Score to hit 75—a threshold it has now reached three times sequentially since the start of the year.

Curiously, a textbook squeeze has not yet fully ignited, although the Short Interest % of Float did fall intermittently, but not in perfect sync with the price action.

In the case of 4004, short interest actually rose alongside the rally this year, indicating that contrarians are aggressively shorting into strength.

Ultimately, the overall pattern reveals a cycle of covering on the way up, right upper point on the graph is 4004.

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