TLDR
- SMCI stock is up 4.22% to $31.74 on Monday as its $7 billion equity financing package officially closes
- The depositary share portion — tied to 7.0% Series A mandatory convertible preferred stock at $50 per share — closed today
- The common stock portion of 45.45 million shares at $27.50 each closed June 12
- Supermicro cited ~$39 billion in AI server orders from 20+ customers as the reason for the raise, against just $1.3 billion in cash as of March 31
- Zacks rates SMCI a Hold (#3), with consensus EPS of $2.56 for the current fiscal year, up 24.3% year-over-year
Super Micro Computer (SMCI) is trading 4.22% higher at $31.74 Monday morning after the company wrapped up the final leg of its $7 billion equity financing deal.
Super Micro Computer, Inc., SMCI
The depositary share portion of the raise — tied to newly issued 7.0% Series A mandatory convertible preferred stock, priced at $50 per depositary share — officially closed today. The common stock side of the deal, which involved 45.45 million shares priced at $27.50 each, had already closed on June 12.
J.P. Morgan, Goldman Sachs, and Citigroup served as lead bookrunners on the deal.
With both portions now closed, the dilution is fully baked in. Investors can now turn their attention to what Supermicro actually does with the money.
Why Supermicro Needed the Cash
The company’s reasoning is fairly simple: it had roughly $39 billion in AI server orders from more than 20 customers rolling in, but only $1.3 billion in cash on the books as of March 31.
That gap — between what customers want and what the company can fund — is what the $7 billion raise is meant to bridge.
For bulls, this isn’t a distress signal. It’s a capacity problem that comes with fast growth. The company needs capital to source components and fulfill a large pipeline of orders.
Last quarter, Supermicro posted revenue of $10.24 billion, up 122.7% year-over-year. EPS came in at $0.84, compared to $0.31 a year ago — a 33.33% beat on earnings estimates, though revenue came in 17.14% below consensus.
What Analysts Are Expecting
For the current quarter, the Zacks consensus estimate puts EPS at $0.70 — a 70.7% jump from the same quarter last year. Revenue estimates for the quarter sit at $11.71 billion, implying 103.5% year-over-year growth.
For the full fiscal year, consensus EPS is $2.56, up 24.3% from the prior year. Next fiscal year, that climbs to $3.15, representing 22.9% growth.
Despite the big numbers, Zacks currently rates SMCI a #3 Hold, giving it a C on valuation — meaning it’s trading roughly in line with peers.
Over the past month, SMCI has returned -1.9%, underperforming the S&P 500’s +0.5% gain. The broader Computer Storage Devices sector, however, gained 25.9% over the same stretch.
Over the last four quarters, Supermicro beat EPS estimates three times, but cleared revenue estimates only once.
The stock is currently trading at $31.74.
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