Super Micro Computer Inc (NASDAQ:SMCI) shares tumbled more than 17% after the company announced $7 billion in equity and equity-linked financing transactions aimed at funding component purchases to fulfill a surge in AI server orders.
The server maker said it has received approximately $39 billion in orders for its advanced AI servers in recent weeks from more than 20 customers, including its Data Center Building Block Solutions, which it plans to fulfill in future quarters
To finance the necessary component purchases, Super Micro is launching concurrent underwritten public offerings totaling $5 billion, comprising roughly $1.25 billion in common stock and approximately $3.75 billion in depositary shares. The company is also establishing an at-the-market offering program of up to $2 billion for common stock, with sales expected to begin no earlier than the third quarter of 2026. JP Morgan, Goldman Sachs and Citigroup will serve as managers for the ATM program under a planned distribution agreement.
Beyond component procurement, Super Micro said it may apply a portion of the proceeds to general corporate purposes, which could include debt repayment, additions to working capital and capital expenditures