Super Micro Computer (NASDAQ:SMCI) saw its shares decline 1.1% to $32.10 in early afternoon trading on Thursday, as the market weighed the impact of a substantial equity raise. The stock opened at $33.34, reached a high of $33.70, and dipped to a low of $31.42, reflecting an intraday range of about 7% from Wednesday’s close. The company’s market capitalization now stands at approximately $22.2 billion.
The recent price action appears more tied to the cost of financing the AI boom than to any concerns about demand. Supermicro has announced plans for a $7.0 billion equity and equity-linked capital raise, which represents roughly one-third of its current market value. The funds are intended to support approximately $39 billion in advanced AI server orders from more than 20 customers, an order book that is about 1.8 times the company’s market cap.
Shares are trading not far from the pricing of the financing. The company sold 45.45 million shares at $27.50 each and 75 million depositary shares linked to 7.0% mandatory convertible preferred stock at $50. Since the offering, the stock has risen about 17% from the offer price, and Thursday’s low remained roughly 14% above that level.
Investors also had fresh partnership announcements to digest. On June 24, Odine Solutions Teknoloji Ticaret ve Sanayi AS (IST:ODINE) said it would partner with Supermicro in Türkiye for NVIDIA-validated GPU systems and AI factory projects. Separately, StorMagic announced that Supermicro compact edge servers are now bundled with StorMagic SvHCI software for edge and small data center deployments. No order values were disclosed for either partnership.
Supermicro continues to build its product line around NVIDIA Corp. (NASDAQ:NVDA). On June 22, the company said its Vera Rubin NVL4 system can incorporate as many as 1,152 Rubin GPUs and 576 Vera CPUs per 3.2-megawatt unit. NVIDIA confirmed that Supermicro and other partners are preparing Vera Rubin NVL4 systems for sale, with a target launch in the fourth quarter.
In a related development, Argentum AI, a private cloud company backed by Supermicro, secured $7.8 billion in AI infrastructure deals for 47,000 NVIDIA GB300 GPUs at its 300-megawatt data center in Poland, according to Barron’s. Argentum CEO Andrew Sobko described it as “one of the top three largest GPU deployments in Europe today.” Supermicro’s stake in Argentum is a $100 million convertible note, a fraction of the reported deal value.
On the analyst front, GF Securities upgraded Supermicro to Buy and set a $48 price target on June 22, as reported by Insider Monkey. Analyst Evan Lee suggested the dilution-hit stock might represent an “attractive entry point.” The new target is roughly 50% above Thursday’s closing price.
Market context showed a mixed picture. The Nasdaq slipped 0.31%, while the S&P 500 gained 0.26%. The Philadelphia Semiconductor Index rose 2.5%, buoyed by gains in Micron Technology Inc. (NASDAQ:MU). Large-cap tech stocks weighed on the Nasdaq.
Looking ahead, investors will focus on cash conversion metrics. Supermicro has guided for fourth-quarter net sales between $11.0 billion and $12.5 billion, with fiscal 2026 revenue projected at $38.9 billion to $40.4 billion. The company burned $6.6 billion in cash from operations in the March quarter and ended the period with $1.3 billion in cash, against $8.8 billion in bank debt and convertible notes.
