r/stocks
Super Micro stock tumbles on $7 billion financing plans as company touts AI server orders
SMCI shares drop 9% after announcing $7B equity financing to fund AI server hardware, causing dilution fears.
- Strong demand for AI servers requires significant capital to purchase hardware components.
- $7 billion equity financing will significantly dilute existing shareholders.
- Stock price tumbled 9% in extended trading following the announcement.
Super Micro Computer shares sank 9% in extended trading on Tuesday after the computer server maker announced $7 billion in equity-related financing deals to help to cover the cost of hardware component purchases.
The company said it’s planning $5 billion in underwritten stock offerings and a $2 billion at-the-market offering, starting in July, through arrangements with JPMorgan Chase, Goldman Sachs and Citigroup. Companies often see their share price drop after announcing stock sales, as investors prepare to see their existing holdings diluted in value.
Super Micro is the latest company tied to the artificial intelligence boom that’s turning to the financial markets for more capital. Earlier this month Alphabet, which offers AI models and cloud infrastructure for model builders such as Anthropic, said it would sell $85 billion in stock, including a $10 billion investment from Berkshire Hathaway.
https://www.cnbc.com/2026/06/09/super-micro-stock-tumbles-on-7-billion-financing-plans.html
Isn‘t this the same company that multiple federal agencies said was embedding spyware at the hardware level? Why are they still in business?
And was dropped by their auditor over "severe loss of trust" lol
multiple federal agencies? it was bloomberg, which is controlled by the CIA. and the claim was so stupid the entire tech sector called it out.
The have a lot of gambling shareholders that for some reason seem to think this fraud has value
I mean, they’re Nvidia’s official unofficial China distribution arm. Jensen absolutely knows what they’re doing; he can’t simultaneously be a complete fool and a genius in the same field of expertise.
They have definite value as long as regulators leave them to continue operating and have near exclusivity on that market. (Though it is absolutely bizarre given how brazen it is without a lick of serious consequence.)
No. That Bloomberg story was bogus. Literally just lies.
If they had done it, there would be a ton of physical evidence. There was none.
SMCI has other problems, but that story was straight-up made-up bullshit propaganda.
Where's the libel suit then
LMFAO. 40 Brillion per year and you still have to dilute.
This is what 3% Margins get ya… 🖕SMCI
I was there through it all… I know.
i mean even GOOG is diluting
The demand is so enormous that debt markets can’t provide the capital to give the industry what it demands. I don’t think I’ve ever even read about a market this hot before
The bond market is way bigger than the stock market. SMCI is junk rated and does not want to pay 9% to 12%. They have a history of fraudulent accounting .
Most companies are not AAA, AA, etc etc.
You can’t just go ask for $10B from bondholders in a week unless you’re Google / MAG 7. They also need the capital right now now 2 months from now.
I mean, if they really have $39B in orders, why not cheaper debt?
Debt markets are tapped dry. Forcing to dilute instead of taking on debt is crazy. Those 39B has to be pretty firm and high margin
Don't leave out the important details: they need this money because they received $39B in orders the past few weeks.
Source?
https://www.sec.gov/Archives/edgar/data/1375365/000119312526263811/d31988ds3asr.htm
I never know shy people invest in this pos.
Probably because of their bashful personalities
Strong buy. SMCI and MU
eli5 why this makes the stock drop so much?
Of course. By the same reason they announce results after hours.
So the trend is now equity raise. Don't take debt, just sell more shares
the 35$ calls i sold might not get executed! hurrah!
Anyone still buying or holding shares of this company deserves to lose their money.
Soon a lot more of these AI companies will be financing and issuing stocks to raise money to fund their capex. That will be my sign to cash out.