SMCI to Raise $7B for AI Servers as Orders Spike, Shares Drop
Super Micro Computer (SMCI) unveiled a plan to raise about $7 billion through a mix of roughly $5 billion in underwritten equity offerings and a $2 billion at-the-market program (starting no earlier than Q3) to fund AI server components, debt repayment, capital expenditures, and other corporate uses. The move comes as demand for Nvidia-powered AI servers supports ~$39 billion in orders, but the stock slid about 9% after hours amid execution concerns and competition from Dell and HPE. JPMorgan Chase, Goldman Sachs, and Citigroup lead the financing, and SMCI also disclosed risk details tied to the March indictment of co-founder Wally Liaw (though SMCI wasn’t named in the case).
