Supermicro plans to raise $7 billion to fulfill $39 billion in AI server orders

Super Micro Computer plans to raise $7 billion through a package of equity offerings to purchase components for its AI servers. The company said Tuesday it has received approximately $39 billion in orders from more than 20 customers in recent weeks for its advanced AI servers, including its Data Center Building Block Solutions, and needs the capital to buy parts to fulfill them.

The offering consists of $5 billion in underwritten stock and depositary shares, split between roughly $1.25 billion in common stock and $3.75 billion in depositary shares. A separate $2 billion at-the-market program will see Supermicro sell shares directly into the open market beginning no earlier than the third quarter of 2026.

The stock fell approximately 9% in after-hours trading on dilution concerns. Supermicro had a market capitalisation of roughly $26.5 billion and about 601 million shares outstanding before the announcement, meaning the $7 billion raise represents more than a quarter of the company’s entire market value.

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The scale of the order backlog, $39 billion from 20-plus customers, is striking relative to Supermicro’s size. The company reported $10.2 billion in revenue for its fiscal third quarter ending March 2026 and has guided fourth-quarter revenue between $11 billion and $12.5 billion. Trailing twelve-month revenue stands at roughly $28 billion, making the backlog larger than a full year of sales.

Supermicro assembles and sells server systems built around Nvidia’s AI chips, positioning it as one of the primary beneficiaries of the AI infrastructure spending wave. Alphabet raised a record $85 billion in equity last week for AI capex, and the hyperscalers’ combined capital expenditure is projected to exceed $690 billion in 2026. That spending flows downstream to server assemblers like Supermicro, Dell, and Hewlett Packard Enterprise.

The raise comes with baggage. Supermicro narrowly avoided being delisted from Nasdaq in early 2025 after its auditor Ernst & Young resigned in October 2024, citing unwillingness to be associated with management’s financial representations. Short seller Hindenburg Research had published a report two months earlier alleging accounting manipulation and sanctions evasion.

The company filed its overdue financial statements in February 2025 and Nasdaq accepted its compliance plan, but the episode raised questions about internal controls that have not fully dissipated. It was not the first time. Supermicro was delisted from Nasdaq in 2018 for failing to file financial statements and was charged by the SEC in 2020 for widespread accounting violations involving more than $200 million in improperly recognised revenue.

In March 2026, co-founder Yih-Shyan Liaw was indicted for allegedly conspiring to divert $2.5 billion in Nvidia AI servers to China, and the company’s stock fell 33% on the day the charges were unsealed. Supermicro has said it was not involved in and had no knowledge of the alleged smuggling scheme. The company has also said it does not expect any restatements of previously filed financial statements related to the 2024 accounting crisis.

Investors weighing the $7 billion offering will have to decide whether $39 billion in orders is enough to offset a corporate history that includes two delistings, an SEC enforcement action, and an indicted co-founder. The company may also use a portion of the proceeds for general corporate purposes, including debt repayment, working capital, and capital expenditure. No timeline has been given for when the underwritten offerings will price.