Is Chevron Corporation (CVX) The Most Crowded Hedge Fund Stock That is Targeted by Short Sellers?

We recently published a list of 15 Most Crowded Hedge Fund Stocks That Are Targeted by Short Sellers. In this article, we are going to take a look at where Chevron Corporation (NYSE:CVX) stands against other most crowded hedge fund stocks that are targeted by short sellers.

Hedge funds piling into a stock is a signal of conviction. After all, if institutional investors are backing a company, there has to be a good reason for it, right?

Things get interesting when the same stock ends up with a high short interest. Where some investors back the company to become successful, others bet on its downfall. This contradiction is often eagerly tracked by investors, as it can potentially lead to explosive moves to either side.

Consider, for instance, a scenario where a stock with a high short interest and a high hedge fund holding starts going up. As everyone rushes to buy more of the already popular stock, short sellers rush to close their positions, triggering a strong bull rally.

We decided to shortlist stocks that were the most likely candidates for such a rally. To come up with our list of 15 most crowded hedge fund stocks that are targeted by short sellers, we only considered stocks with a market cap of at least $1 billion and a short interest of at least 3%. We then ranked these stocks by the number of hedge funds that have the stock in their portfolio.

Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 81

Short Interest:  3.51%

Chevron Corporation (NYSE:CVX) is involved in integrated chemicals and energy operations. It generates its revenue through the Downstream and Upstream segments. Recently, the firm’s CEO expressed concerns about potentially leaving Venezuela. He warned that the US could allow Russian and Chinese companies to fill the void.

Due to economic concerns, the company’s CEO anticipates a potential slowdown in global oil demand growth. However, he mentioned Chevron’s record-breaking U.S. production. He also noted some headwinds, including diminishing U.S. refining capacity and issues with refilling the Strategic Petroleum Reserve (SPR).

CEO Mike Wirth highlighted:

“We delivered record U.S. production in 2024 and expect it to grow again by 100,000 barrels in 2025. Chevron is growing production by over 50% over just the next two years in the Gulf of America, with plans to reach a million barrels daily in the Permian Basin.”

Chevron Corporation (NYSE:CVX) maintained its annual share repurchase plan worth $10 billion to $20 billion. For Q2, share repurchase is anticipated to be in the range of $2.5 billion and $3 billion. Aided by new production from FGP and other key projects, additional free cash flow is expected to reach $10 billion by 2026. The firm aims to achieve $2 billion to $3 billion in cost savings by 2026.

Overall, CVX ranks 8th on our list of most crowded hedge fund stocks that are targeted by short sellers. While we acknowledge the potential of CVX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CVX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.