Super Micro Computer (NASDAQ:) stock fell in New York trading Tuesday after the company said it is planning to offer 2 million shares of its common stock in a public sale. This way, the company is capitalizing on the fact that SMCI stock is up 252% year-to-date.
SMCI stock was down 11.5% at 11:15 ET (15:15 GMT).
Super Micro also plans to give the underwriter, Goldman Sachs, the option to buy up to an additional 300,000 shares within 30 days, it said in a filing. Goldman Sachs is the only underwriter and manager for this sale, handling the process and potential transactions.
Bloomberg News reported that Super Micro is offering shares in the range of $900 to $1000.68. At the time of writing, SMCI stock is indicated to open at $906.00.
Super Micro Computer designs and builds high-performance servers and it has been a major AI beneficiary. Rosenblatt analysts recently hiked their price target on SMCI stock to $1300.
“Key to the story is for investors to consider that the company is benefiting not only from secular AI growth (over 50% CAGR over next several years) but material share gains,” they wrote in a note.
“We anticipate these gains to reach double digits in the next couple of years, up from the current mid-single digits, with a particular focus on enterprise,” analysts added.
Super Micro Computer stock fell 6.4% yesterday.