Super Micro drops 13% after lining up $7 billion stock sales

Super Micro Computer shares fell 13% after the server maker set plans for $7 billion in equity-related financing, a move aimed at funding hardware component purchases as AI demand ramps up. The company said it will pursue $5 billion in underwritten stock offerings and a $2 billion at-the-market sale beginning in July through JPMorgan Chase, Goldman Sachs and Citigroup. The fundraising follows what Super Micro described as $39 billion in AI server orders from more than 20 customers in recent weeks. Revenue in the March quarter more than doubled from a year earlier. CEO Charles Liang said on the company’s May earnings call that memory costs have more than tripled in recent months.