Super Micro Computer unveiled a $7 billion equity raise: a $5 billion public offering split into $1.25 billion common stock and $3.75 billion depositary shares, plus a $2 billion at-the-market program. Shares plunged over 8% in after-hours trading as investors weighed the funding plan against a $39 billion AI backlog.
Super Micro Computer’s financing comprises a $5.0 billion public offering and a $2.0 billion at-the-market equity program. The public offering splits into $1.25 billion of common stock and $3.75 billion of mandatory convertible preferred depositary shares, while the ATM program can be drawn starting in Q3 2026.
Proceeds are earmarked to purchase high-tech components needed to fulfill approximately $39 billion of AI server orders from over 20 customers. A portion of net proceeds may also address debt repayment, bolster working capital and fund capital expenditures.
Shares declined over 8% in after-hours trading as investors reacted to the size and dilutive potential of the capital raise. The sell-off reflects broader investor caution about the upfront costs required to secure components for AI hardware.
The $5.0 billion public offering is expected to close in the coming weeks, providing immediate liquidity, while the $2.0 billion at-the-market program offers a flexible funding runway through late 2026, aligning draws with evolving supply chain needs.
Benzinga
