San Jose, California – Super Micro Computer, a leading artificial intelligence (AI) server maker, announced plans on Tuesday to sell 2 million shares in a move that could potentially raise around $2 billion. Following this news, the company’s shares experienced a sharp decline of about 12%.
Since the start of the year, shares of the San Jose-based company have soared, more than tripling in value. This increase in stock value has made selling equity an attractive option for raising funds.
Super Micro’s success in developing servers crucial for generative AI applications, along with its proprietary liquid cooling technology, has established the company as a key supplier in the industry. This success, in turn, led to the company’s recent inclusion in the S&P 500 index, making its stock more accessible to a wider range of investors.
Despite recent gains, the company’s shares have decreased in value by 16% over the past three trading sessions. Based on the closing price of $1,000.68, the company could potentially raise $2 billion through the stock sale. However, the issue price for the shares has not been disclosed.
Last month, Super Micro raised $1.73 billion in a convertible bond offering to support its business expansion. The proceeds from the latest offering of shares are expected to be used for various purposes, including purchasing inventory, expanding manufacturing capacity, increasing research and development investments, and other working capital needs.
Following the completion of the offering, the company’s outstanding shares will increase to 58.6 million. Additionally, the underwriter, Goldman Sachs, has the option to purchase up to 300,000 additional shares within the next 30 days.
Super Micro’s strategic moves in the stock market reflect its efforts to capitalize on the growing demand for AI-related technologies. With the funds raised from the share offering, the company aims to further strengthen its position in the market and drive continued innovation in the AI server sector.