Super Micro Computer just told the market it has a very good problem: roughly $39 billion in AI server orders from more than 20 clients. The solution to that problem, however, sent the stock tumbling.
SMCI announced a $7 billion equity and equity-linked financing package on June 9, designed to fund the component purchases necessary to actually fill those orders. The stock dropped roughly 13% the following day, as shareholders did what shareholders do when they hear the word “dilution.”
Inside the $7 billion deal
The financing breaks down into two main buckets. The first is a $5 billion concurrent underwritten offering, split between $1.25 billion in common stock and $3.75 billion in depositary shares. The second is a $2 billion at-the-market program for common stock, which isn’t expected to launch until Q3 2026 at the earliest.
JPMorgan, Goldman Sachs, and Citigroup are all expected to play roles in facilitating the deal.
