Super Micro Computer Inc (NASDAQ:SMCI) shares are tumbling in extended trading Tuesday after the company announced a proposed offering to fund AI orders.
Super Micro Computer stock is feeling bearish pressure.
Why are SMCI shares down?
Super Micro Announces Financing Transactions After market close on Tuesday, Super Micro announced a series of offerings expected to generate gross proceeds of $7 billion to fund the purchase of components to fulfill AI server orders that the company received in "recent weeks." The proposed offerings consist of a $1.25 billion common stock offering and a $3.75 billion depositary shares offering, as well as an at-the-market offering of up to $2 billion expected to begin no earlier than the third quarter.
Super Micro said it has received approximately $39 billion of orders in recent weeks from more than 20 customers.
