Super Micro Computer, Inc. has announced a $7 billion equity and equity-linked financing plan to support rising demand for its artificial intelligence server systems. The company said the capital will primarily fund procurement of components required to fulfill large-scale AI orders received in recent weeks.
The financing comes as Supermicro scales production to meet accelerating demand across AI infrastructure, cloud computing, storage, and edge computing markets. The company reported approximately $39 billion in AI server orders from more than 20 customers. These orders are expected to be fulfilled in upcoming quarters.
The financing structure includes multiple components. It consists of a $5 billion underwritten public offering and a separate at-the-market (ATM) program of up to $2 billion. The ATM program is expected to begin no earlier than the third quarter of 2026, depending on market conditions.
The $5 billion underwritten offering is split into two parts. Around $1.25 billion will come from common stock issuance. Approximately $3.75 billion will be raised through depositary shares linked to mandatory convertible preferred stock.
The company said the two underwritten offerings will proceed independently. One is not contingent on the other. Each offering also includes a 30-day over-allotment option for additional share sales.
The ATM program will be managed by J.P. Morgan, Goldman Sachs, and Citigroup Inc.. These institutions will act as distribution managers under the agreement.
Supermicro said proceeds will be used to purchase components needed for AI server production. These include systems designed for data center building block solutions. The company said it expects strong demand across multiple enterprise and hyperscale customers.
A portion of proceeds may also be used for general corporate purposes. These include debt repayment, working capital, and capital expenditures. The company is expanding its supply chain capacity to support AI infrastructure growth.
The depositary shares will represent a 1/20th interest in a new series of mandatory convertible preferred stock. Each depositary share will carry proportional rights linked to conversion, dividends, liquidation, and voting.
The preferred stock will have a liquidation preference of $1,000 per share. Each depositary share will have a $50 liquidation value. The structure is designed to provide flexible financing while supporting long-term capital needs.
The securities will automatically convert into common stock around June 1, 2029. Conversion will occur unless executed earlier under defined conditions. The final conversion rate, dividend terms, and related conditions will be set at pricing.
Supermicro said there is currently no public market for the depositary shares or the underlying preferred stock. The company plans to apply for listing of the depositary shares on the Nasdaq Global Select Market under the symbol “SMCIP.”
The financing reflects broader pressure across the AI hardware supply chain. Demand for high-performance computing infrastructure continues to rise. Server manufacturers are expanding capacity to meet large-scale AI deployment needs.
Supermicro has positioned itself as a key provider of modular AI server systems. These systems support training and inference workloads for enterprise and hyperscale customers. The company is focused on scaling production while maintaining supply chain stability.
The offerings include flexibility in execution. The common stock and depositary share transactions are independent. Each can proceed without affecting the other. The ATM program adds further optionality for future capital raising.
The underwriters for the offerings include J.P. Morgan, Goldman Sachs, and Citigroup Inc.. ICR Capital LLC is serving as financial advisor for the depositary share issuance.
Supermicro said the financing is designed to ensure it can meet near-term and long-term demand cycles in the AI server market. The company is targeting continued expansion across cloud, enterprise, and AI-native workloads.
