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Super Micro Computer Sees 12% Dip as Stock Sale Announced

Mar 19, 2024 - techtimes.com
Super Micro Computer, based in San Jose, California, plans to sell 2 million shares, potentially raising $2 billion and reducing its shares by 12%. The decision comes after the company's shares tripled since January, driven by its role in the AI-driven market and the rising demand for servers for AI data centers. Despite a recent 16% drop over three trading days, the company could still net $2 billion from the stock sale, although the issue price is not yet known. The funds raised will be used for R&D, manufacturing capacity development, inventory purchase, and other working capital needs.

The company's growth is being driven by the AI boom, with increased demand for more processing power and data storage. Despite its rapid expansion, Super Micro Computer has recently sold shares, with CEO Charles Liang and Director Daniel Fairfax selling shares earlier this year. The company's market valuation stands at $63.21 billion, demonstrating its dominance in the IT sector. The recent resignation of board member Shiu Leung Chan has not impacted the company's financial and market performance.

Key takeaways:

  • Super Micro Computer plans to sell 2 million shares for a possible $2 billion, which would lower the AI server maker's shares by 12%.
  • The company's quick development of servers required for generative AI applications has solidified its position as a major supplier in the market.
  • Super Micro Computer's fourth-quarter net sales were $3.66 billion, up 100% year over year, and its net income was $300 million.
  • Shiu Leung Chan resigned from the company's board of directors on March 11, but this did not seem to impact the company's financial and market performance.
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