Super Micro stock falls 9% after announcing $7 billion in stock offerings to fund AI server component purchases
By
Jordan Novet
If you only eat one bagel today, this is the bagel.
Summary
Super Micro Computer announced $7 billion in equity-related financing deals ($5 billion in stock offerings and $2 billion at-the-market offering) starting in July through JPMorgan Chase, Goldman Sachs, and Citigroup. The funds will cover hardware component purchases. The company's stock dropped 9% in extended trading as investors anticipated dilution of existing holdings. Super Micro is the latest AI-related company to tap capital markets.
Key quotes
· 4 pulledSuper Micro Computer shares sank 9% in extended trading on Tuesday after the computer server maker announced $7 billion in equity-related financing deals to help to cover the cost of hardware component purchases.
The company said it's planning $5 billion in underwritten stock offerings and a $2 billion at-the-market offering, starting in July, through arrangements with JPMorgan Chase, Goldman Sachs and Citigroup.
Companies often see their share price drop after announcing stock sales, as investors prepare to see their existing holdings diluted in value.
Super Micro is the latest company tied to the AI boom to announce that it's tapping the capital markets.
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