Supermicro Computer (SMCI) stock fell as much as 13% on Wednesday after the AI server maker announced plans to raise approximately $7 billion through a combination of equity and equity-linked financing.
The proposed offerings consist of:
Concurrent underwritten offerings: $5.0 billion underwritten public offerings.
At-the-market offering: up to $2.0 billion at-the-market, or ATM, offering program for common stock, expected to begin no earlier than the third quarter of 2026.
Supermicro said in a statement: “The Company intends to use a portion of the net proceeds from the offerings, together with proceeds from the ATM program, to fund the purchase of components to satisfy the approximately $39 billion of orders that the Company has received in recent weeks for its advanced AI servers, including its Data Center Building Block Solutions, from more than 20 customers, that the Company plans to fulfill in future quarters.”
Despite the shares slumping, the stock is still up 13% year to date amid a boom in AI server demand.
By CEO NA Editorial Staff
