Super Micro Computer (SMCI) shares plunged Tuesday after the data center specialist announced a new stock offering.
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The San Jose, Calif.-based company said it plans to sell 2 million additional shares of common stock, pushing its total shares outstanding to more than 58.5 million.
“The principal purposes of this offering are to obtain additional capital to support our operations, including for the purchase of inventory and other working capital purposes, manufacturing capacity expansions and increased research and development (R&D) investments,” Super Micro said in a regulatory filing.
Super Micro has been one of the big winners in the AI investing craze spurred by excitement around generative artificial intelligence.
This year through Monday’s close, Super Micro stock had soared 252%. And in the past 12 months, it had rocketed 824%.
Super Micro Stock Is On 2 IBD Lists
However, on the stock market today, Super Micro stock fell 9% to close at 910.97. Earlier in the session, the stock was down as much as 13.8%.
Super Micro shares have been on a tear since the company delivered a beat-and-raise earnings report for the December quarter on Jan. 29.
Super Micro stock ranks first out of 16 stocks in IBD’s computer hardware industry group, according to IBD Stock Checkup.
Further, it is on two IBD stock lists: Big Cap 20 and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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