Supermicro priced its IPO below the range, at $8 a share, and gained just 9.5 percent on day one. Few people noticed. The San Jose company built server motherboards and systems in Silicon Valley, a place most hardware makers had left for cheaper factories in Asia. It sold building blocks that customers could mix into the machines they needed. Fifteen years later, those machines became the racks that held the chips of the AI boom.

Building Blocks in San Jose

Charles Liang started the company in 1993 with his wife, Sara Liu. Liang was an engineer, and he ran Supermicro as one. The company designed boards, chassis, and power supplies that fit together in many ways. A customer could order a server close to custom without waiting months. Supermicro kept much of its design and assembly in San Jose, which let it move fast when a new chip came out.

Eight Dollars, Then a Boom

Supermicro sold 8 million shares at $8 on March 29, 2007, below its planned range of $9.50 to $11.50. The stock closed the day at $8.76. For years it grew quietly. Then demand for AI servers exploded, and the shares soared through 2023 and early 2024. A short seller's report, an auditor's resignation, and late filings followed in 2024. Supermicro stayed listed, and it still trades on Nasdaq as SMCI.

Cover: Untitled (Gold Miners in Front of a Pond), Unknown. Art Institute of Chicago, public domain. Chosen for gold miners (selling shovels in a gold rush).