Shares of Super Micro fell as the AI ​​server maker looks to raise $2 billion through a stock sale

(Reuters) – Super Micro Computer Inc revealed on Tuesday that it would sell 2 million shares that could fetch about $2 billion, sending the artificial intelligence server maker's shares down about 12%.

Shares of the San Jose-based company have more than tripled since January, making raising money through a stock sale a lucrative option.

The gains outpaced those of Nvidia, which has been behind the ongoing AI-led rally on Wall Street this year, thanks to growing demand for its servers used in AI data centers.

Super Micro's ability to rapidly develop core servers for generative AI applications, and its in-house liquid cooling technology, have helped the company become a major supplier.

The rise in Super Micro's market cap also led to its inclusion in the S&P 500 on Monday, opening the stock to more investors.

However, its shares lost 16% of their 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 sale of shares was not disclosed.

Super Micro raised $1.73 billion last month by offering convertible bonds to support 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.

She added that the company's outstanding shares will rise to 58.6 million shares after the offering, adding that the underwriter, Goldman Sachs, has the option to purchase up to 300,000 additional shares within 30 days.

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(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguly)

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