Super Micro Stock Tumbles After Company Announces Stock Offering
Super Micro Computer, which has seen its share price more than triple this year on the back of the artificial intelligence boom, is cashing in on that rise with a public stock offering.
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Super Micro Computer, which has seen its share price more than triple this year on the back of the AI boom, is cashing in on that rise with a public stock offering.#semiconductor #chips pic.twitter.com/9dxWGoafbW
— The_Journalbiz (@the_journalbiz) March 19, 2024
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Supermicro said Tuesday it plans to sell 2 million shares. That would raise around $2 billion based on Monday’s closing price of $1,000.68.
The stock was down about 10% in recent trading Tuesday.
The San Jose company has about 56.6 million shares outstanding. It plans to use proceeds to support its operations, including buying inventory and for other working-capital purposes; boosting manufacturing capacity; and investing more in research and development.
Supermicro shares were changing hands below $100 a year ago. They have taken flight with the boom in AI demand, and hit a high of $1,229 on March 8. Supermicro’s revenue is projected to double this year, thanks to sales of its servers that use Nvidia AI chips.
The news earlier this month that Supermicro would join the S&P 500 index has also boosted its shares. The inclusion took effect Monday.
Nvidia and other AI- and chip-related stocks also fell Tuesday.
