Super Micro Computer Inc. priced equity offerings on Thursday, selling 45.5 million common shares at $27.50 each and 75 million depositary shares at $50 each. The AI server maker expects to receive net proceeds of approximately $1.22 billion from the common stock offering and roughly $3.68 billion from the preferred stock offering. The company plans to use part of the proceeds to purchase components needed to fulfill around $39 billion in recently secured orders for advanced AI servers from more than 20 customers. SMCI stock traded around 0.7% higher at the time of writing, following a nearly 28% decline in the previous session.
Super Micro Computer Prices $7 Billion Equity Offerings
Super Micro Computer priced 45.5 million common shares at $27.50 each and 75 million depositary shares tied to a newly issued 7% mandatory convertible preferred stock at $50 each. The stock was trading at around $29.1 at the time of writing. The company expects to receive about $1.22 billion in net proceeds from the common stock offering and roughly $3.68 billion from the preferred stock-linked offering. The company also announced plans to launch an at-the-market share sale program worth up to $2 billion, starting from the third quarter of 2026. The company has a market cap of roughly $17.6 billion. SMCI shares have declined around 3% so far in 2026.
Company Plans Component Purchases for $39 Billion AI Server Orders
Supermicro said it plans to use part of the proceeds to purchase components needed to fulfill around $39 billion in recently secured orders for its advanced AI servers from more than 20 customers.
Wolfe Research Initiates Coverage Amid Dilution and Legal Risks
Wolfe Research initiated coverage of SMCI stock with a Peer Perform rating and without a price target, according to The Fly. Analyst George Notter flagged multiple risks tied to the company, including margin pressure, customer concentration, governance issues, potential fallout from the DOJ indictment, and equity dilution. In March, co-founder Yih-Shyan "Wally" Liaw and two people working with the company were charged with helping to smuggle at least $2.5 billion in U.S. AI technology, including Nvidia servers, to China, in violation of export laws.
FAQ
What did Super Micro Computer announce on Thursday?
Super Micro Computer priced equity offerings on Thursday, selling 45.5 million common shares at $27.50 each and 75 million depositary shares at $50 each, expecting to receive net proceeds of approximately $1.22 billion from the common stock offering and roughly $3.68 billion from the preferred stock offering.
Why is Super Micro Computer raising $7 billion?
The company plans to use part of the proceeds to purchase components needed to fulfill around $39 billion in recently secured orders for its advanced AI servers from more than 20 customers.
What legal issues does Super Micro Computer face?
In March, co-founder Yih-Shyan "Wally" Liaw and two people working with the company were charged with helping to smuggle at least $2.5 billion in U.S. AI technology, including Nvidia servers, to China, in violation of export laws.
