June 24 — Super Micro Computer (SMCI, Financial) shares declined about 6% on Monday after the AI-focused server manufacturer disclosed plans to raise $2 billion through a convertible notes offering, according to a press release.
The San Jose-based company said the unsecured bonds will mature on June 15, 2030. Proceeds will be used for general corporate purposes, and about $200 million will fund capped call transactions intended to limit dilution from future share conversions.
Super Micro also said initial buyers of the offering will have the option to purchase up to an additional $300 million of notes within 13 days of issuance.
The stock had gained more than 40% year to date heading into Monday's session. However, the offering raised concerns among investors about potential share dilution. Shares have experienced heightened volatility over the past year, partly tied to prior concerns about delayed financial reports and changes to the company's fiscal 2025 outlook.
The firm met Nasdaq filing requirements in February after a previous delay, which helped lift the stock earlier this year. Still, it reduced its sales guidance in May, pressuring sentiment again.
The new debt plan suggests Super Micro is preparing for future growth, but the market appears cautious about short-term shareholder dilution.
