Hello readers,
Exciting news in the tech industry today as Super Micro Computer has announced its plans to sell 2 million shares, potentially raising about $2 billion. This decision has caused the AI server maker’s shares to drop 9% in pre-market trading.
Based in San Jose, Super Micro Computer has seen its shares soar in value this year, with prices tripling since January. This surge in value has made selling equity a profitable option for the company.
While Super Micro Computer’s gains have outperformed those of Nvidia, a major player in the AI market, recent declines have caused some concern. However, with a closing price of $1,000.68, the company stands to raise a significant amount of capital through this stock sale.
The funds raised from the sale will be used for various purposes such as purchasing inventory, expanding manufacturing capacity, and increasing research and development investments. The company’s outstanding shares will increase to 58.6 million following the offering, with the underwriter, Goldman Sachs, having the option to purchase additional shares within 30 days.
This news comes amidst a booming AI market on Wall Street, where demand for servers used in artificial intelligence data centers is soaring. Stay tuned for more updates on this exciting development.
– Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli
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