Logos of Super Micro Computer are pictured at one of the world’s largest computer and technology trade shows, in Taipei, Taiwan May 30, 2023.
Ann Wang | Reuters
Shares of Super Micro Computer dropped on Tuesday after the company announced a new share offering, taking a bite out of one of the biggest rallies tied to the AI boom.
The company said in a filing Tuesday morning that it plans to sell 2 million additional shares of common stock, pushing its total shares outstanding to over 58 million.
The shares were down 10% in premarket trading.
Super Micro, 1-day
“The principal purposes of this offering are to obtain additional capital to support our operations, including for the purchase of inventory and other working capital purposes, manufacturing capacity expansions and increased research and development (‘R&D’) investments,” the filing said.
Super Micro Computer, a computer infrastructure company, has become one of the biggest winners of Wall Street’s appetite for AI investments. Its stock has surged more than 900% over the past year prior to Tuesday’s decline, outpacing even Nvidia.
Super Micro Computer, YTD
Goldman Sachs is the underwriter for the new share offering. Goldman also has an option to purchase up to 300,000 additional shares of Super Micro within the next 30 days.
Read the full article here
