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Why Is Supermicro Stock Trading Lower On Monday? - Super Micro Computer (NASDAQ:SMCI)
- On Monday, Super Micro Computer Inc. announced a $2 billion offering of convertible senior notes due June 15, 2030, causing its shares to fall about 6%.
- The bond offering followed a tumultuous 2024 marked by accounting allegations that led to SEC financial refilings, auditor replacement, and board changes.
- Super Micro intends to use part of the proceeds for stock repurchases and capped call transactions to limit shareholder dilution while funding growth in AI and cloud infrastructure.
- Raymond James analysts highlighted that Super Micro has become a key player in infrastructure tailored for AI applications, with AI-related business making up roughly 70% of its revenue, and they advised investors to consider buying the stock.
- Despite a nearly 41% year-to-date stock gain, ongoing uncertainties around tariffs, AI chip supply, and financial transparency continue to influence investor caution and volatility.
14 Articles
14 Articles
Why Is Supermicro Stock Trading Lower On Monday? - Super Micro Computer (NASDAQ:SMCI)
Super Micro Computer (NASDAQ: SMCI) plans to raise $2 billion through convertible senior notes due 2030. The company will use the proceeds for growth, business expansion, and to fund a portion of the cost of entering into capped call transactions. This move is seen as a way to manage potential dilution for existing shareholders and strengthen the company's financial position.
$2.0 Billion Convertible Senior Notes Due 2030 Proposed by Supermicro
Super Micro Computer, Inc. announced that it intends to offer, subject to market conditions and other factors, $2.0 billion aggregate principal amount of convertible senior notes due 2030. The Convertible Notes are to be offered and sold to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of […] The post $2.0 Billion Convertible Senior Notes Due 2030 Proposed by Supermicro appeared…
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