shares super microcomputer Shares fell on Tuesday after the company announced a new stock offering, reeling from one of the biggest rallies tied to the artificial intelligence boom.
The company said in a statement Archive On Tuesday morning, the company planned to sell an additional 2 million shares of common stock, bringing its total outstanding shares to more than 58 million.
The stock fell 12% in early trading.
Ultra-miniature, 1 day
“The primary purpose of the offering is to obtain additional capital to support our operations, including the purchase of inventory and other working capital purposes, expansion of manufacturing capabilities and increased investment in research and development (‘R&D’),” the filing said.
Goldman Sachs is the underwriter of the new share offering. Goldman Sachs also has the option to purchase up to an additional 300,000 shares of AMD stock over the next 30 days.
Tech infrastructure company Super Micro has emerged as one of the biggest winners from Wall Street’s artificial intelligence investment appetite.In the year before Tuesday’s drop, the company’s shares had soared more than 900%, even surpassing Nvidia.
Supermicrocomputers, year to date
Recent advances in artificial intelligence, including large-scale language models such as ChatGPT, require increased computing power and data storage. That’s led investors to focus on chipmakers like Nvidia and server infrastructure companies like Advanced Micro Computer as the first wave of beneficiaries.
Super Micro Computer is a fast-growing company but is still relatively small compared with the technology giants, which have also driven their stock prices higher due to their interest in artificial intelligence. The company reported fourth-quarter net sales of $3.66 billion, an annual increase of more than 100%. It generated nearly $300 million in net profit.
Notably, a number of Super Micro Computer insiders have sold shares in the company in recent months.Chief Executive Tony Leung sold approx. 1,000 shares In January, it was attributed to his spouse.Director Daniel Fairfax has been sold 900 shares So far this year, it spans three different days.
The Liang and Fairfax sales are part of a formal stock sale, according to VerityData and filings.But other transactions, including sales 5,000 shares Director Sherman Tuan’s proposal does not appear to be part of such a plan.
Director Shiu Leung Chan did purchase 2,000 shares on February 1, although he Resigned He became a director on March 11. Supermicro stated that his resignation was to focus on family business projects and had nothing to do with any differences with the company.
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