Supermicro intends to secure $7 billion to meet $39 billion in orders for AI servers.

      Supermicro intends to raise $7 billion through a series of equity offerings to acquire components for its AI servers. The company announced on Tuesday that it has received around $39 billion in orders from over 20 customers in recent weeks for its advanced AI server solutions, including its Data Center Building Block Solutions, and requires this capital to source the necessary parts.

      The offering includes $5 billion in underwritten stock and depositary shares, divided into roughly $1.25 billion in common stock and $3.75 billion in depositary shares. Additionally, there will be a separate $2 billion at-the-market program, allowing Supermicro to directly sell shares in the open market starting no earlier than the third quarter of 2026.

      The stock dropped by approximately 9% in after-hours trading due to concerns about dilution. Before the announcement, Supermicro had a market capitalization of about $26.5 billion and approximately 601 million shares outstanding, meaning the $7 billion raise represents more than a quarter of its total market value.

      The significant order backlog of $39 billion from over 20 customers is notable considering Supermicro’s size. The company reported $10.2 billion in revenue for its fiscal third quarter ending March 2026 and projects fourth-quarter revenue between $11 billion and $12.5 billion. The trailing twelve-month revenue is roughly $28 billion, indicating that the backlog is larger than a full year’s sales.

      Supermicro manufactures and sells server systems that utilize Nvidia's AI chips, positioning it as a major benefactor of the current AI infrastructure spending surge. Recently, Alphabet raised a record $85 billion in equity for AI capital expenditures, and the combined capital expenditures of hyperscalers is expected to surpass $690 billion in 2026. This influx of spending benefits server assemblers like Supermicro, Dell, and Hewlett Packard Enterprise.

      However, the raise is accompanied by some challenges. In early 2025, Supermicro narrowly avoided a delisting from Nasdaq after its auditor, Ernst & Young, resigned in October 2024 due to concerns about management’s financial representations. A report from short seller Hindenburg Research, released two months prior, alleged accounting manipulation and evasion of sanctions.

      The company submitted its overdue financial statements in February 2025, which Nasdaq accepted as part of its compliance plan; however, the situation raised ongoing concerns about internal controls. This was not the first incident of this nature, as Supermicro was delisted from Nasdaq in 2018 for not filing financial statements and was charged by the SEC in 2020 for numerous accounting violations involving over $200 million in improperly recorded 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, leading to a 33% drop in the company’s stock on the day the charges became public. Supermicro has stated that it had no involvement or knowledge regarding the alleged smuggling scheme, and it does not anticipate any restatements of prior financial statements connected to the 2024 accounting crisis.

      Investors considering the $7 billion offering will need to evaluate whether the $39 billion in orders is sufficient to counterbalance the company’s past issues, which include two delistings, an SEC enforcement action, and an indicted co-founder. The company may also allocate part of the proceeds for general corporate purposes, such as debt repayment, working capital, and capital expenditures. No specific timeline has been provided for the pricing of the underwritten offerings.