Super Micro Computer's big stock split is today. Here’s what to know

Illustration: MF3d (Getty Images)
Illustration: MF3d (Getty Images)

Super Micro Computer (SMCI) is set to undergo a stock split after the market closes on Monday, aligning itself with other prominent AI-driven companies like Nvidia and Broadcom, which also executed stock splits earlier this year. Following the split, the stock will begin trading Tuesday at its adjusted—and substantially lower—price.

Shortly after the market opened on Monday morning, Super Micro Computer’s shares were priced at $426, reflecting a 1.5% increase.

What is SMCI’s stock split?

Super Micro Computer’s 10-for-1 stock split is expected to boost demand for the company’s shares. In a stock split, the company increases the number of shares, reducing the share price, but the total dollar value of all shares outstanding remains the same and doesn’t affect the company’s valuation.

Super Micro Computer’s 10-for-1 split means that, for each SMCI share an investor owns, they will receive an extra nine after the split is completed.

A rollercoaster year for SMCI

The San Jose-based IT company, which makes hardware that supports AI applications, thrived this year due to the high demand for AI and entered the Fortune 500 at No. 498. As a key partner and reseller of Nvidia’s (NVDA) GPUs and other components, Super Micro integrates its technology into its servers to support AI workloads. Super Micro CEO Charles Liang and Nvidia CEO Jensen Huang, are both Taiwanese immigrants and have a long-standing relationship.

Super Micro Computer went through a rough phase in September when a short seller, Hindenburg Research, published a scathing report accusing the company of accounting red flags and questionable business dealings, including potential sanctions evasion from exports to Russian and Chinese firms.

Following these accusations, Super Micro’s stock price took a significant hit. The company refuted the claims, stating that the report contained misleading and inaccurate information and that it would address the allegations in due course.

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