tech
Super Micro stock tumbles on $7 billion financing plans as company touts AI server orders
Super Micro is the latest company tied to the AI boom to announce that it's tapping the capital markets.
TL;DR
- Super Micro Computer announced $7 billion in equity-related financing deals, causing its shares to drop 9% in extended trading.
- The financing includes $5 billion in underwritten stock offerings and a $2 billion at-the-market offering.
- The company has received $39 billion in AI server orders from more than 20 customers in recent weeks.
- Demand for AI-ready servers has increased sharply, boosting Super Micro's revenue.
- The cost of memory has more than tripled in recent months, according to the CEO.