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When considering stocks, it's always helpful to gauge what the rest of the market thinks. One source for that is the number of shares shorted. Companies seeing significant increases in shares shorted are being viewed more negatively, and vice-versa.

We ran a screen on the tech sector for stocks seeing the most significant decreases in shares shorted month-over-month. This indicates that short sellers are less bearish on these names than they were before.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks will outperform too? Use this list as a starting point for your own analysis.

List sorted by decrease in shares shorted as a percent of share float.

1. VanceInfo Technologies Inc. (NYSE:VIT): Engages in the provision of information technology services. Market cap of $582.40M. Shares shorted have decreased from 8.89M to 7.48M month-over-month, a change representing 5.60% of the company's 25.18M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.3). The stock is a short squeeze candidate, with a short float at 19.48% (equivalent to 11.12 days of average volume). The stock has had a good month, gaining 47.85%.

2. First Solar, Inc. (NASDAQ:FSLR): Manufactures and sells solar modules using a thin-film semiconductor technology. Market cap of $3.54B. Shares shorted have decreased from 20.88M to 18.70M month-over-month, a change representing 3.66% of the company's 59.56M share float. The stock has had a couple of great days, gaining 5.79% over the last week.

3. Applied Micro Circuits Corp. (NASDAQ:AMCC): Designs, develops, markets, and supports integrated circuits for processing, transporting, and storing of information worldwide. Market cap of $492.97M. Shares shorted have decreased from 6.96M to 5.54M month-over-month, a change representing 3.11% of the company's 45.64M share float. The stock is a short squeeze candidate, with a short float at 9.16% (equivalent to 5.51 days of average volume). The stock has had a good month, gaining 16.88%.

4. InterDigital, Inc. (NASDAQ:IDCC): Engages in the design and development of digital wireless technology solutions. Market cap of $1.65B. Shares shorted have decreased from 6.41M to 5.12M month-over-month, a change representing 3.07% of the company's 41.98M share float. The stock is currently stuck in a downtrend, trading 14.79% below its SMA20, 15% below its SMA50, and 25.7% below its SMA200. It's been a rough couple of days for the stock, losing 21.09% over the last week.

5. Garmin Ltd. (NASDAQ:GRMN): Operates as a holding company and through its subsidiaries, designs, develops, manufactures, and markets global positioning system enabled products and other navigation, communication, and information products worldwide. Market cap of $8.10B. Shares shorted have decreased from 18.21M to 15.30M month-over-month, a change representing 2.70% of the company's 107.74M share float. The stock is a short squeeze candidate, with a short float at 14.23% (equivalent to 13.64 days of average volume). The stock has gained 38.64% over the last year.

6. WebMD Health Corp. (NASDAQ:WBMD): Provides health information services to consumers, physicians and other healthcare professionals, employers, and health plans through its public and private online portals, mobile platforms, and health-focused publications in the United States. Market cap of $1.53B. Shares shorted have decreased from 4.21M to 3.12M month-over-month, a change representing 2.69% of the company's 40.54M share float. The stock has performed poorly over the last month, losing 29.99%.

7. Cabot Microelectronics Corp. (NASDAQ:CCMP): Engages in the development, manufacture, and sale of chemical mechanical planarization consumables to the semiconductor industry. Market cap of $1.15B. Shares shorted have decreased from 3.05M to 2.49M month-over-month, a change representing 2.54% of the company's 22.05M share float. The stock is a short squeeze candidate, with a short float at 10.95% (equivalent to 14.3 days of average volume). The stock has gained 10.05% over the last year.

8. GT Advanced Technologies Inc. (GTAT): Provides polysilicon production technology and multicrystalline ingot growth systems, and related photovoltaic manufacturing services for the solar industry worldwide. Market cap of $1.10B. Shares shorted have decreased from 17.69M to 14.77M month-over-month, a change representing 2.32% of the company's 126.12M share float. The stock is a short squeeze candidate, with a short float at 11.65% (equivalent to 5.93 days of average volume). The stock has had a good month, gaining 19.23%.

9. SuccessFactors, Inc. (NYSE:SFSF): Provides cloud-based business execution software solutions that enable organizations to bridge the gap between business strategy and results worldwide. Market cap of $3.35B. Shares shorted have decreased from 6.18M to 4.35M month-over-month, a change representing 2.20% of the company's 83.25M share float. The stock has gained 34.24% over the last year.

10. Power-One Inc. (NASDAQ:PWER): Designs, manufactures, and markets power conversion and power management solutions for the renewable energy ((NYSE:RE)), communications infrastructure, and other technology markets. Market cap of $477.37M. Shares shorted have decreased from 12.76M to 10.94M month-over-month, a change representing 2.16% of the company's 84.38M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.19). The stock has had a good month, gaining 19.58%.

11. JDS Uniphase Corporation (JDSU): Provides communications test and measurement solutions, and optical products for telecommunications service providers, cable operators, and network equipment manufacturers. Market cap of $3.09B. Shares shorted have decreased from 10.77M to 6.04M month-over-month, a change representing 2.07% of the company's 228.50M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.4). The stock has had a good month, gaining 27.68%.

12. Silicon Graphics International Corp. (NASDAQ:SGI): Focuses on helping customers solve their technology challenges by delivering clustered and high-performance computing and storage solutions, and software and services. Market cap of $433.59M. Shares shorted have decreased from 8.65M to 8.08M month-over-month, a change representing 1.96% of the company's 29.03M share float. The stock is a short squeeze candidate, with a short float at 26.08% (equivalent to 15.21 days of average volume). The stock has had a good month, gaining 16.55%.

13. Isoftstone Holdings Limited (NYSE:ISS): Provides various information technology services and solutions in the Greater China and internationally. Market cap of $551.25M. Shares shorted have decreased from 2.34M to 1.80M month-over-month, a change representing 1.82% of the company's 29.61M share float. The stock has recently rebounded, and is currently trading 9.15% above its SMA20 and 10.43% above its SMA50. However, the stock still trades 15.82% below its SMA200. The stock has had a good month, gaining 22.02%.

14. Patni Computer Systems Limited (NYSE:PTI): An information technology services company, provides a range of IT services through integrated onsite and offshore delivery locations. Market cap of $1.28B. Shares shorted have decreased from 134.17K to 41.45K month-over-month, a change representing 1.80% of the company's 5.16M share float. Exhibiting strong upside momentum--currently trading 7.07% above its SMA20, 11.22% above its SMA50, and 25.24% above its SMA200. The stock has had a good month, gaining 13.26%.

15. AsiaInfo-Linkage,Inc. (NASDAQ:ASIA): Provides telecommunications software solutions and information technology products and services to telecommunications carriers and other enterprises in the People's Republic of China. Market cap of $834.50M. Shares shorted have decreased from 8.11M to 7.34M month-over-month, a change representing 1.77% of the company's 43.50M share float. The stock is a short squeeze candidate, with a short float at 21.84% (equivalent to 10.94 days of average volume). The stock has had a couple of great days, gaining 16.94% over the last week.

16. DemandTec, Inc. (NASDAQ:DMAN): Provides collaborative optimization network of software services connecting retailers and consumer products companies. Market cap of $445.41M. Shares shorted have decreased from 1.71M to 1.18M month-over-month, a change representing 1.71% of the company's 30.93M share float. The stock has gained 2.73% over the last year.

17. Iridium Communications Inc. (NASDAQ:IRDM): Provides mobile voice and data communications services through satellites to businesses, the U. Market cap of $577.63M. Shares shorted have decreased from 9.52M to 8.75M month-over-month, a change representing 1.58% of the company's 48.75M share float. The stock is a short squeeze candidate, with a short float at 17.85% (equivalent to 21.79 days of average volume). The stock has lost 6.29% over the last year.

18. Vonage Holdings Corporation (NYSE:VG): Provides voice and messaging services over broadband networks to residential, small office, and home office customers primarily in the United States, Canada, and the United Kingdom. Market cap of $532.32M. Shares shorted have decreased from 9.71M to 7.18M month-over-month, a change representing 1.58% of the company's 159.99M share float. The stock has lost 28.27% over the last year.

19. CIENA Corp. (NYSE:CIEN): Provides communications networking equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic. Market cap of $1.49B. Shares shorted have decreased from 23.79M to 22.50M month-over-month, a change representing 1.56% of the company's 82.60M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.19). The stock has had a good month, gaining 26.67%.

20. IPG Photonics Corporation (NASDAQ:IPGP): Manufactures fiber lasers and amplifiers for use in a range of markets, such as materials processing, advanced technologies, telecommunications, and medical applications. Market cap of $2.53B. Shares shorted have decreased from 2.21M to 1.93M month-over-month, a change representing 1.39% of the company's 20.12M share float. The stock has had a good month, gaining 49.54%.

*Data from January 25. Short data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.