AI data center infrastructure firm Super Micro Computer (SMCI) says it received tens of billions of dollars in new orders in the last three months.
The massive orders point to explosive demand in artificial intelligence infrastructure, as SMCI shares explode close to 20% on the news, reports The Kobeissi Letter.
Revenue is now expected to nearly quintuple compared to the same period last year as the order surge underscores rapid expansion in the sector.
While SMCI is generating massive investor interest, The Kobeissi Letter warns that more investors are turning bearish on the US stock market.
“Bearish bets on US stocks are surging:
Short interest in the S&P 500 is up to ~3.7% of its free float, near the highest in data going back to 2010.
Short interest in the Russell 3000 is up to ~6.1%, also near an all-time high.
Both metrics have steadily increased since the start of 2025.
Furthermore, short interest across all NYSE-listed stocks rose to a record 9.0% of shares outstanding in late June.
By comparison, this metric peaked at ~5.0% during the 2008 Financial Crisis and ~6.0% during the 2020 pandemic.”
According to The Kobeissi Letter, the surging short interest suggests that the market is primed for a short squeeze.
A short squeeze happens when stock prices abruptly surge, forcing those who made bearish bets to buy back shares simultaneously to close their positions, fueling further rallies.
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