AI data center infrastructure company Super Micro Computer (SMCI) says it has received tens of billions of dollars in new orders in the past three months.
The massive orders indicate explosive demand for artificial intelligence infrastructure, as SMCI shares exploded nearly 20% on the news. reports The Kobeissi letter.
Sales are now expected to increase almost fivefold compared to the same period last year, as the increase in orders underlines the rapid expansion in the sector.
While SMCI generates huge investor interest, The Kobeissi Letter warns that more and more investors are turning bearish on the US stock market.
“Bearish bets on US stocks rise:
Short interest in the S&P 500 is ~3.7% of the free float, near the highest in data going back to 2010.
Short interest in the Russell 3000 is ~6.1%, also near an all-time high.
Both metrics have steadily increased since early 2025.
In addition, short interest for all NYSE-listed stocks rose to a record 9.0% of shares outstanding at the end of June.
By comparison, this measure peaked at ~5.0% during the 2008 financial crisis and at ~6.0% during the 2020 pandemic.”
According to The Kobeissi Letter, rising short interest suggests the market is primed for a short squeeze.
A short squeeze occurs when stock prices rise abruptly, forcing those who made bearish bets to simultaneously buy back shares to close out their positions, fueling further rallies.
Follow us further X, Facebook And Telegram
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Generated image: Midjourney