Super Micro Computer Stock Plummets 9.75% with 26.59 Billion Shares Traded Ranking 18th in Market

On June 23, 2025, Super Micro Computer (SMCI) experienced a significant decline, with its stock price dropping by 9.75%. The trading volume for the day was substantial, reaching 26.59 billion, making it the 18th highest in the market for that day.

Super Micro Computer announced its intention to offer $2.0 billion in convertible senior notes due 2030, subject to market conditions. The company plans to use up to $200.0 million of the net proceeds to repurchase shares of its common stock from purchasers of the Convertible Notes. The offering includes an option to upsize by $300 million, with the notes accruing semi-annual interest and maturing in 2030.

The market's reaction to the news was swift, with shares falling due to concerns about the dilutive effect of the notes, which can be converted to the company's ordinary stock, raising the total share count. The stock's volatility is not uncommon, as it has had 88 moves greater than 5% over the last year. This move indicates that the market considers the news meaningful but not something that would fundamentally change its perception of the business.