(Reuters) – Super Micro Computer said on Tuesday it would sell 2 million shares, potentially trading for about $2 billion, sending the artificial intelligence (AI) server maker's shares down about 12%.
The San Jose-based company's stock has more than tripled since January, making raising capital through a stock sale a lucrative option.
The gains exceeded those of Nvidia, which has fueled a relentless AI-driven rally on Wall Street this year, thanks to a surge in demand for servers used in artificial intelligence data centers.
Super Micro's ability to quickly develop servers essential to generative AI applications and in-house liquid cooling technology have helped the company grow into a leading supplier.
Supermicro's soaring market value led to the company's inclusion in the S&P 500 index on Monday, opening the stock to more investors.
However, the company's stock has lost 16% in value after falling for three consecutive trading sessions, and based on its closing price of $1,000.68, the company could raise about $2 billion. The issue price for the stock sale was not disclosed.
Last month, Supermicro raised $1.73 billion in a convertible bond issue to fuel business expansion.
Proceeds from the latest offering will be used to purchase inventory, expand manufacturing capacity, increase research and development investments and other working capital purposes, the company said in a regulatory filing with the U.S. Securities and Exchange Commission on Tuesday. said.
The company's outstanding shares will increase to 58.6 million shares after the offering, it said, adding that underwriter Goldman Sachs has the option to purchase up to 300,000 additional shares within 30 days.
(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguly)