By George Glover

Investors just got another reminder that the artificial-intelligence boom is driving up costs, as well as sales.

Super Micro Computer Inc. said late Tuesday that it would raise $7 billion in a series of equity and equity-linked financing packages to help satisfy surging demand for its servers and storage systems.

Shares, which trade under the ticker SMCI, dropped 9% to $37 in premarket trading. Futures tracking the S&P 500 dropped 0.8% as investors carried on selling tech stocks.

Super Micro is planning to offer $5 billion in new common and preferred shares and raise an extra $2 billion in an at-the-market offering in July or later. ATM offerings allow companies to slowly trickle new shares into the market rather than sell them in a big block.

The AI boom has driven up demand for servers but left Super Micro short of cash as it struggles to meet the spike in demand. The company intends to use the money raised to buy components needed to fulfill $39 billion worth of orders that it has received in recent weeks.

Shares, which trade under the ticker SMCI, have swung in recent days as Wall Street tries to figure out how long the AI frenzy can last. SMCI stock dropped 7.6% on Tuesday as investors ditched some of the AI-linked names that have powered the market higher so far this year.

Super Micro isn't the only tech company to tap the stock market to fund the AI buildout. Google parent Alphabet said last week that it would issue $80 billion in equity, including $40 billion in an ATM offering.

Equity offerings dilute existing shareholders, so they tend to drag down a stock.

The other major worry for investors is Super Micro's single-digit profit margin, which the company has struggled to grow due to higher costs and intense competition from peers such as Dell Technologies which was trading down 2.5% in the Wednesday premarket.

Still, the Super Micro stock is up 39% this year, driven up by the expectation that the AI boom will drive up orders.

Write to George Glover at george.glover@dowjones.com

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June 10, 2026 06:43 ET (10:43 GMT)

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