SMCI Stock Rebounds Overnight After Worst Drop In 3 Months: Retail Traders Question $39B Orders

SMCI on Tuesday proposed raising $7 billion by issuing stock, funds it said it needs to service $39 billion in new orders it received in recent weeks.

• SMCI stock dropped 28% on Wednesday; it rose over 1% in overnight trading.
• After the indictment of one of the company’s co-founders in March, some retail traders appeared skeptical of the legitimacy of the new orders and sought further disclosure from the company.
• Stocktwits sentiment for SMCI was ‘neutral. 

Super Micro Computer Inc.’s stock pared some losses in overnight trading after suffering its worst fall in nearly three months on Wednesday, triggered by a $7 billion equity offering, which fanned dilution fears.

SMCI stock edged up 1.3%. It cratered 28% during the regular session, leaving the shares down 42% from their June 2 peak. Beyond concerns over the company’s $7 billion capital raise, broader market pressures – including renewed Iran-related geopolitical tensions, rising inflation fears, and reports of investors reallocating funds ahead of the blockbuster SpaceX IPO – weighed on sentiment and added to the selling pressure on Wednesday. 

SMCI Stock: Buy The Dip Or Further Slide Ahead?

While many agreed that SMCI’s drop was larger than necessary, retail traders’ views were divided between buying the dip as an oversold opportunity and fearing further declines due to management credibility issues and ongoing legal headwinds, according to trader commentary on Stocktwits.

Central to the debate is whether the company’s strong order backlog justifies the current volatility in its valuation. While announcing the equity offerings, Super Micro said the proceeds from the issue would largely go towards servicing approximately $39 billion of new orders it received in recent weeks.

Without disclosing names, the company said it received orders from 20 customers for advanced AI servers, including its Data Center Building Block Solutions.

SMCI Stock: Retail Skeptical About $39B Orders

On Stocktwits, the retail sentiment for SMCI remained ‘neutral’ for a second day, while the message volume for the ticker increased 180% on Wednesday.

“$SMCI imagine selling a company that just announced $39B in new business. Must be stupid,” said a trader, while another wrote: “$SMCI Oversold now, time to buy!”

However, there remained skepticism and some traders questioned the legitimacy of the new orders, especially after one of the company’s co-founders was indicted in March for illegally selling advanced AI servers to Chinese customers in violation of export rules.

SMCI distanced itself from the controversy, stating that it had no role to play and that the accused acted independently. SMCI stock fell nonetheless at the time, with investors fearing that the event could attract regulatory scrutiny on the company.

“$SMCI would go back up if they showed proof of 39bil in orders,” argued a trader.

After Wednesday’s decline, SMCI stock is now nearly flat for 2026.

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