April 17, 2024

Brighton Journal

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Super Micro Computer shares fall on planned stock sales

Super Micro Computer shares fall on planned stock sales

Super micro computer (SMCI) Shares fell on Wednesday after the data center specialist priced its upcoming stock offering. Super Micro stock fell Tuesday after the company first announced a stock sale.




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

In morning trading on the stock market today, Super Micro shares fell 4.5% to 870. On Tuesday, shares fell 9% to close at 910.97.

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

Goldman Sachs is the sole guarantor

Investment Bank Goldman Sachs (A) acts as the sole underwriter and sole managing director of the Offer.

Super Micro has 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 purchasing inventory and other working capital needs, expanding manufacturing capacity and increasing research and development investments.

Super Micro has been one of the big winners in the AI ‚Äč‚Äčinvestment craze caused by excitement around generative AI.

This year through Monday's close, Super Micro stock is up 252%. In the past 12 months, they have risen by 824%.

Super Micro stock is on two IBD listings

Shares of Super Micro have been on a tear since the company reported a beat and higher earnings report for the December quarter on January 29.

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Super Micro stock ranks No. 1 out of 16 stocks in IBD's Computer Hardware industry group, according to… IBD inventory check.

Furthermore, it is on two IBD stock lists: Big hat 20 And technology 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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