Super Micro announced a $7 billion equity and equity-linked financing package on June 9 to fund component purchases for the surge in AI server orders it has received [1, 2]. The offering includes $5 billion in underwritten stock sales and a $2 billion at-the-market offering scheduled to start in July [2].
The company has secured $39 billion in AI server orders from more than 20 customers over the past few weeks, driving a sharp increase in demand [1, 2]. CEO Charles Liang said in May that "the cost of memory has more than tripled in recent months," adding pressure on component procurement [2].
Super Micro's revenue in the March quarter more than doubled year over year as the AI-driven demand boosted sales markedly [2]. Despite the optimistic order book, Super Micro's shares fell between 7% in after-hours trading and 9% in extended sessions following the financing announcement [1, 2].
In March, a co-founder resigned from the board after a federal indictment related to allegations of smuggling Nvidia AI chip equipment into China [2].
The $7 billion financing is expected to support component purchases needed to fulfill the booming AI server orders. Super Micro plans to begin the $2 billion at-the-market offering starting in July [2].
