Super Micro stabilizes after $5 bln equity, convertible combo for AI server backlog

Super Micro Computer

11/06/2026 17:56

** Shares of Super Micro Computer SMCI.O up 2% at $29.87 on Thurs after amassing most of its targeted equity raise to meet surging demand
** SMCI early Thurs announced pricing public offerings of ~45.45 mln shares at $27.50 for $1.25 bln and $3.75 bln 7% 3-year mandatory convertible preferred stock
** SMCI's stock tumbled 28%, its steepest decline since Mar 20, to close at $29.27 on Weds after co late Tues said it was seeking $7 bln of equity to fulfill approx $39 bln of orders it received in recent weeks for its advanced AI servers from more than 20 customers
** Co anticipates starting $2 bln ATM (at-the-market) stock sales program no sooner than Q3
** JP Morgan, Goldman Sachs and Citigroup lead bookrunners for stock and mandatory offerings
** San Jose, California-based SMCI has ~601.4 mln shares outstanding for nearly $18 bln market cap
** Stock has lost about 35% this month, leaving it up roughly 2% YTD
** Avg rating of 21 analysts is "hold"; median PT $38.23, per LSEG data 

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))