UiPath, another stock with AI partnerships, is up 20% in a week and appears crowded.

UiPath (PATH) operates in the robotic process automation (RPA) software space and recently announced collaborations with OpenAI, NVIDIA, and Snowflake—three leaders in the AI ecosystem.

PATH shares rose 12.5% on Monday and 22% over the past week, mirroring a familiar rally pattern among AI stocks or firms aligned with AI leaders. This surge coincided with similar upward moves stocks like AMD and Palantir.

PATH became profitable for the first time this year—a key milestone that may be shifting long interest data and sentiment. With no convertible debt, PATH’s short position represents a true risk short.

Short interest stands at a high 13.5%—more than double its level earlier this year, based on S3's short interest data. The stock saw a sell-off earlier this year, yet short selling sentiment data showed no material rise in short interest.

While the stock has returned to previous levels, its short interest doubling has pushed the short squeeze score to a heightened 87.5, signaling elevated short squeeze risk.

The stock isn’t overly crowded based on crowded shorts data—this squeeze appears to be momentum-driven and may fade if the rally loses steam.

Short sellers are now facing meaningful mark-to-market losses for the first time this year, per S3’s short interest analytics.

Volatility has spiked, with PATH rallying 15% in the lead-up to its latest 22% surge, underscoring short-term trading risks. Implied volatility is above realized meaning investors do not want to sell options given the risks.

PATH stands out as most analysts maintain neutral ratings, with a smaller proportion issuing buys and even fewer recommending sells.

This aligns with PATH’s range-bound trading behavior between $10 and $15 over the past five quarters—a pattern that reinforces analyst caution and reflects ongoing herd risk indicators.

Other names with similar patterns are TEM, ASTS, all in October. Large companies include AMD, NVDA, MU, PLTR, INTC, TSLA.

Want to know more? Access this data in real time using S3’s BLACK APP & BLACK MAP

The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (“S3 Partners”) to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks, and merits, as well as the legal, tax, accounting, and investment consequences, of such decisions.