Supermicro Computer stock was poised to decline as much as 12% at the open on Wednesday.
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The server and storage system maker is planning to raise $7 billion to fulfill $39 billion worth of recent orders.
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The company plans to use the proceeds to address large-scale AI server orders for over 20 customers.
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Super Micro Computer Inc (NASDAQ:SMCI) shares fell roughly 9% in premarket trading on Wednesday after the company unveiled plans for a major capital raise aimed at funding its rapidly expanding artificial intelligence server business. The fundraising package totals approximately $7 billion and is intended to provide the company with the resources needed to address a growing order backlog linked to demand for AI infrastructure.
The server and storage system maker is planning to raise $7 billion to fulfill $39 billion worth of recent orders.
↘️ SoftBank Group (JP:9984): The Japanese technology investor and OpenAI backer slid more than 8% in Tokyo as the AI selloff pummeled stocks in Asia. In South Korea, chip makers Samsung Electronics and SK Hynix also dropped sharply.
Stocktwits data showed retail traders continued to maintain a ‘bullish’ stance on QQQ, but have turned ‘neutral’ on SPY.
Super Micro shares fell sharply after the company unveiled a $7 billion fundraising plan, as investors weighed dilution concerns against surging demand for its AI infrastructure products.
The U.S. launched fresh strikes on Iran late Tuesday in retaliation for the downing of an American combat helicopter near the Strait of Hormuz.
Super Micro Computer, Inc. announced a massive, multi-part $7.0 billion equity and equity-linked financing initiative to buy components for a sudden $39-billion surge in artificial intelligence server orders.
Investing.com -- Super Micro Computer Inc (NASDAQ:SMCI) watched its stock tumble over 9% in after-hours trading Tuesday following the announcement of massive new financing plans. Investors reacted with visible caution as the server manufacturer revealed a sweeping $7.0 billion capital raise designed to bankroll its surging AI backlog. The multi-tranche funding strategy is uniquely structured to capture both immediate and future market liquidity. It features a $5.0 billion concurrent underwritten
Super Micro Computer said on Tuesday it would raise $7 billion through a series of equity and equity-linked financing transactions to fund the purchase of components needed to meet the growing demand for its advanced AI servers. AI infrastructure firms have seen accelerated demand as tech companies and cloud providers ramp up investments in data centers to support large language models and other AI applications. Super Micro also plans to sell shares worth up to $2 billion in an at-the-market offering not before the third quarter.
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the hardware & infrastructure stocks, including Super Micro (NASDAQ:SMCI) and its peers.
Shares of Super Micro Computer (NASDAQ:SMCI) are down 11% at midday Tuesday, while Dell Technologies (NYSE:DELL) is sliding 9%. Both high-beta AI hardware names are getting hit in a coordinated risk-off move across the AI infrastructure complex. The selling comes as the broader market also weakens, with the S&P 500 ETF down 1.5% to 2% ... Super Micro Plunges 11%, Dell Sinks 9% as High-Beta AI Hardware Stocks Get Hit
The Nasdaq turned suddenly lower Tuesday morning. The Dow was down 276 points, or 0.5%. A majority of S&P 500 stocks were rising, but highflying semiconductor and optical networking stocks were suddenly dragging down the index, rather than lifting it.
From Niche Server Builder to AI Infrastructure Powerhouse A decade ago, Super Micro Computer (NASDAQ:SMCI) was a quiet Silicon Valley server maker most investors had never heard of. Then the generative AI boom hit, NVIDIA (NASDAQ:NVDA) GPUs became the most coveted silicon on earth, and Supermicro’s modular, liquid-cooled server racks became the shovel of choice. ... From $1,000 to $17,070: How Super Micro Computer Became an AI Infrastructure Juggernaut in Ten Years
FEATURE There’s no need for Wall Street to worry about the artificial-intelligence trade fizzling out, judging by the stocks that were rising ahead of the opening bell Tuesday. Chip maker Marvell Technology jumped 4.
US and Taiwanese authorities are investigating alleged export-control and chip-smuggling violations tied to Super Micro Computer's Nvidia-based servers. A recent US Department of Justice indictment names individuals reportedly connected to Super Micro Computer's technology supply chain, while the company itself is not a defendant. Super Micro Computer has said it is cooperating with authorities and tightening compliance processes to reduce the risk of its hardware being diverted to...
Shares of Dell Technologies (NYSE:DELL) and Hewlett Packard Enterprise (NYSE:HPE) are gaining attention as both names extending a torrid one-month run powered by AI-server demand. DELL stock is up 54% over the past month, while HPE stock has rallied 59% over the same window. Dell shares were last changing hands near $398, building on a ... Dell Soars 54%, HP Enterprise Rockets 59% in a Month as AI-Server Demand Booms
Supermicro is enjoying a rally that looks to be short-lived.
Super Micro Computer has outperformed the S&P 500 recently, yet analysts remain cautious about the stock’s prospects.