Super Micro Computer said it plans to raise $7.0 billion through a mix of equity and equity-linked transactions to help finance a wave of AI server orders.
The company said the financing package includes two underwritten offerings totaling $5.0 billion: about $1.25 billion of common stock and about $3.75 billion of depositary shares tied to newly issued mandatory convertible preferred stock. It also plans an at-the-market program for up to $2.0 billion of common stock, expected to begin no earlier than the third quarter of 2026.
Supermicro said the capital will help fund component purchases for about $39 billion of AI server orders it says it has received in recent weeks from more than 20 customers. The company said those orders are for advanced AI servers, including data center building block solutions, and are expected to be fulfilled in future quarters.
The depositary-share portion is structured around preferred stock with a $1,000 liquidation preference per share, or $50 per depositary share. The preferred shares are expected to convert automatically on or about June 1, 2029, into common stock if they are not converted earlier.
J.P. Morgan, Goldman Sachs and Citigroup are serving as lead joint bookrunning managers on the offerings. Following these announcements, the company's shares moved -4.72%, and are now trading at a price of $30.46. For more information, read the company's full 8-K submission here.
