Super Micro Computer to raise $7 billion in equity offerings to meet AI server demand
Logos of Super Micro Computer are pictured at COMPUTEX Taipei, one of the world’s largest computer and technology trade shows, in Taipei, Taiwan May 30, 2023. REUTERS/Ann Wang
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
June 9 : 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.
The company said it will use the proceeds to fulfill orders worth about $39 billion for its advanced AI servers from more than 20 customers.
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. Last week, Alphabet moved to raise $84.75 billion in upsized equity offerings.
The financing package will include sale of about $3.75 billion in depositary shares and $1.25 billion in common stock to underwriters. Shares of the AI server maker fell 8 per cent in extended trading.
Super Micro also plans to sell shares worth up to $2 billion in an at-the-market offering not before the third quarter.
The company said it may also use a portion of the net proceeds for other purposes, including repayment of debt, additions to working capital and capital expenditures.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
About The Author
