Catenaa, Wednesday, June 10, 2026- Supermicro Computer stock fell by 18% on Wednesday after it announced plans to raise $7 billion to complete AI server orders.
Supermicro said the capital, which will be raised through a combination of equity and equity-linked financing, will be used to purchase components to fulfill roughly $39 billion in AI server orders it received in recent weeks.
The fear is that component prices are increasing, and server suppliers like Supermicro won’t be able to pass those higher costs to customers. The result will be lower gross margins. The stock offering will also dilute existing shareholders.
Shares of Supermicro extended declines from Tuesday, when the stock dropped 12%. Year to date, the stock is still up 14% amid a boom in AI server demand.
Supermicro joins a growing list of companies raising cash in the public market in order to expand AI-related initiatives.
The underwritten offerings, which consist of a $1.25 billion share sale and a $3.75 billion offering of depositary shares with underlying mandatory convertible preferred stock, are expected to price Wednesday evening New York time, according to terms of the deal seen by Bloomberg News.
The financing plan will dilute near-term earnings, “but it also signals AI demand that could lift fiscal 2027 revenue above the $50 billion consensus,” Woo Jin Ho, an analyst at Bloomberg Intelligence, wrote in a note. “The capital will help fund components and capex for large AI deployments, though the dilution could exceed 20%, depending on final terms and at-the-market usage.”
Alphabet recently announced an $80 billion equity capital raise, which was later upsized to $84.75 billion. The company plans to use the money to expand its AI infrastructure and compute capabilities.
The capital raise comes ahead of major AI-related IPOs, including SpaceX, Anthropic, and OpenAI.
Margin pressure is the real driver of today’s stock action, though. Supermicro stock has recently recovered from declines driven by legal probes into export controls and a related lack of investor trust.
Margins have also been recovering, helping investors feel more comfortable buying the stock with the strong underlying business conditions.
It’s a stretch to think the company can pass along higher component prices, though, given strong competition from other AI server makers like Dell Technologies. That has investors bailing out of Supermicro shares today.
Also, US prosecutors in March charged company co-founder Yih-Shyan “Wally” Liaw with illegally diverting billions of dollars in Nvidia-powered servers to China, in violation of US export controls.
The company wasn’t named in the indictment. Earlier Tuesday, Super Micro in a filing updated its risk factor disclosures to include the indictment and resulting “negative publicity.”
