Super Micro Computer Shares Extend Slide After Stock Offering Priced

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Super Micro Computer (SMCI) shares fell Wednesday after the data center specialist priced its upcoming stock offering at a discount. Super Micro stock tumbled on Tuesday after the company first announced the stock sale.

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The San Jose, Calif.-based company said it plans to sell 2 million additional shares of common stock, pushing its total shares outstanding to more than 58.5 million. Super Micro priced the new shares at $875 each.

On the stock market today, Super Micro stock fell 1.6% to close at 896.47. On Tuesday, shares dropped 9% to close at 910.97.

Super Micro expects to generate gross proceeds of $1.75 billion from the offering before deducting underwriting discounts, commissions and offering expenses. The offering is expected to close by Friday.

Goldman Sachs Is Sole Underwriter

Investment bank Goldman Sachs (GS) is acting as sole underwriter and sole book-running manager for the offering.

Super Micro also granted the underwriter a 30-day option to purchase up to an additional 300,000 shares at the public offering price.

The company intends to use the proceeds to support its operations, including for purchase of inventory and other working capital needs, manufacturing capacity expansion and increased research and development investments.

Super Micro has been one of the big winners in the AI investing craze spurred by excitement around generative artificial intelligence.

This year through Monday’s close, Super Micro stock had soared 252%. And in the prior 12 months, it had rocketed 824%.

Super Micro Stock Is On 2 IBD Lists

Super Micro shares have been on a tear since the company delivered a beat-and-raise earnings report for the December quarter on Jan. 29.

Super Micro stock ranks first out of 16 stocks in IBD’s computer hardware industry group, according to IBD Stock Checkup.

Further, it is on two IBD stock lists: Big Cap 20 and Tech Leaders.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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