Super Micro Computer alarmed investors Tuesday morning by announcing a recent stock offering, sending its stock price plummeting just a day after debuting on the S&P 500.
The 31-year-old server and computer infrastructure company plans to sell another one 2 million shares common stock, according to regulatory filings. It currently has 56.5 million shares outstanding.
Super Micro shares fell more than 12% in Tuesday morning trading, leading to a 6% decline in Monday’s trading. Shares of the San Jose, California-based company reached a high of $1,198 per share on March 13 before falling to $876 per share on Tuesday. The company’s stock has surged 790% over the past year, fueled by Wall Street’s interest in artificial intelligence.
“The primary objectives of this offering are to raise additional capital to support our operations, including for inventory purchases and other working capital purposes, expansion of production capacity and increased investment in research and development (“R&D”),” the company said in its submission.
Super Micro is one of several beneficiaries the latest surge in interest in artificial intelligence and has become a repeated supplier to various companies and governments. His servers – equipped with chips from his repeated collaborator Nvidia – it is expected that double the company’s revenue this year.
The company’s strategy of creating “bricks”, which can be mounted on servers in various configurations, has given it a huge advantage over rivals that have a more constrained set of offerings. This flexibility has given Super Micro an edge in the AI boom, enabling it to serve businesses doing everything autonomous car technology to the so-called huge language models (LLM) that power AI chatbots ChatGPT OpenAI.
Super Micro announced this on Monday three recent ones based on Nvidia “Deployment-ready” generative AI superclusters. These clusters aim to reduce energy consumption and lower the cost of ownership of data centers by cooling servers efficiently.
The company too announced recent systems for generative artificial intelligence with recent Nvidia Next-generation Blackwell GPUs. The press release chip announcement was praised for hosting a “Who’s Who” interview of technology CEOs, hosted by Microsoft’s CEO Satya Nadella and CEO of Tesla Elon Musk to the CEO of Google Sundar Pichai and Amazon’s Andy Jassy.
