  Matter-wave interferometry is essential to both science and technology.
Phase-space squeezing has been shown to be an advantageous source of atoms,
whereby the spread in momentum is decreased. Here, we show that the opposite
squeezing may be just as advantageous. As an exemplification, we analyze the
effect of such a source on point source atom interferometry (PSI), which
enables rotation sensing. We describe how a squeezed PSI (SPSI) increases the
sensitivity and dynamic range while facilitating short cycle times and high
repetition rates. We present regions in parameter space for which the figures
of merit are improved by orders of magnitude and show that under some
definition of compactness, the SPSI is superior by more than four orders of
magnitude. The SPSI thus enables either enhancing the performance for standard
size devices or maintaining the performance while miniaturizing to a chip-scale
device, opening the door to real-life applications.
