NEW YORK, July 17, 2026, 13:16 (EDT)
- Super Micro Computer NASDAQ:SMCI gained 1.5% to $25.04 at the start of U.S. trading.
- Initial assessment: June funding terms correspond to between 209 million and 232 million common-equivalent shares ahead of underwriter options.
- U.S. authorities have launched a DRAM patent investigation that includes Super Micro; no merits determination has been made by regulators.
Super Micro Computer NASDAQ:SMCI was trading roughly 9% below its June common-offering price on Friday. The stock gained 1.5% to $25.04 as of 1:01 p.m. EDT, with regular U.S. trading still underway.
The gap is significant since the $27.50 offer was set to finance AI server parts. The June deal aimed for as much as $7 billion, accounting for both underwriter options and an at-the-market scheme.
According to a preliminary estimate, the combined total of the common offering and preferred share conversion would account for 159 million to 182 million common-equivalent shares. Using the full ATM facility at Friday’s closing price would add approximately 50 million more shares. In sum, this represents 30%-33% of the 695 million GAAP diluted shares projected in the company’s May outlook. The calculation does not factor in underwriter options.
Based on that share count, Super Micro reported approximately $39 billion in AI-server orders from over 20 customers. This total is 2.25 times the company’s $17.3 billion equity value as of Friday.
However, these orders do not represent binding commitments. Super Micro noted that they could still be cancelled, postponed, or impacted by other conditions.
The test for investors is straightforward: orders need to convert into revenue, margins, and cash quickly enough to maintain per-share returns.
SMCI’s valuation currently shows more skepticism compared to direct server peers.
| Company | Price | Friday move | Market value | Trailing P/E |
|---|---|---|---|---|
| Super Micro Computer NASDAQ:SMCI | $25.04 | up 1.5% | $17.3 billion | 12.0x |
| Dell Technologies NYSE:DELL | $402.33 | up 2.8% | $263.4 billion | 32.0x |
| Hewlett Packard Enterprise NYSE:HPE | $46.33 | up 2.7% | $66.3 billion | 42.5x |
Data for intraday trading was captured at 1:01 p.m. EDT. All figures have been rounded.
Super Micro’s multiple is approximately 62% lower than Dell’s and about 72% beneath HPE’s. The comparison is not exact, as the product mix and margins vary.
The U.S. International Trade Commission this week launched investigation 337-TA-1511 concerning DRAM from Samsung Electronics KRX:005930 and devices incorporating it, bringing new legal challenges. Super Micro is listed as a respondent.
Netlist OTCMKTS:NLST is requesting limited exclusion and cease-and-desist orders in its complaint. The commission has yet to rule on the substance of the case and will determine a target completion date within 45 days.
DRAM acts as short-term data storage for processors and plays a vital role in AI servers. If Netlist wins, an unfavourable ruling might have an impact on relevant imports or sales.
The case arose amid a broader decline in AI hardware stocks. By early Friday, the Philadelphia semiconductor index had fallen 11% for the week. “The pullback reflects profit-taking and rising scrutiny of AI capex sustainability,” said Toni Meadows, head of investment at BRI Wealth Management. Reuters
Super Micro shares fell 8.2% on Thursday, then rebounded on Friday.
The financing push is detailed in the balance sheet. Preliminary, unaudited figures for the fiscal third quarter reported operating cash outflow of $6.6 billion. Cash reserves amounted to $1.3 billion, with bank debt and convertible notes reaching $8.8 billion.
Gross margin improved to 9.9%, up from 6.3% in the previous quarter. The company expects fourth-quarter revenue between $11.0 billion and $12.5 billion. GAAP earnings are projected at $0.53-$0.67 per diluted share.
Risks: If Netlist wins the ITC case, covered products could face disruption. There is also a possibility that orders may be cancelled or postponed. Additional ATM sales and preferred share conversions might dilute holdings for common shareholders.
Based on Friday’s share price, the equity value stands at roughly 44 cents for every dollar of disclosed orders. This figure does not represent a sales multiple, but rather suggests a broad gauge of investor skepticism.
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