Super Micro stock tumbles on $7 billion financing plans as company touts AI server orders
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- Super Micro Computer announced a $7 billion equity‑related financing plan, comprising a $5 billion underwritten offering and a $2 billion at‑the‑market offering to begin in July, with JPMorgan Chase, Goldman Sachs and Citigroup as arrangers.
- Super Micro Computer shares fell 9 % in extended trading after the financing announcement.
- Super Micro Computer reported $39 billion in AI server orders from more than 20 customers in recent weeks, driving a more‑100 % year‑over‑year revenue increase in the March quarter.
- Charles Liang said memory costs have more than tripled in recent months during the earnings call.
- Super Micro Computer had been up about 39 % year‑to‑date before the post‑announcement drop.
- Super Micro Computer co‑founder resigned from its board in March after being named in a federal indictment for allegedly smuggling equipment containing Nvidia AI chips into China.
Why it matters: The $7 billion equity raise dilutes existing shareholders, reflected in the 9 % price drop, while the $39 billion order backlog confirms strong AI demand that can sustain revenue growth; meanwhile, soaring memory costs and a board member’s indictment add pressure on margins and governance.
