Why Super Micro Computer Shares Sank Friday
Shares of Super Micro Computer (NASDAQ: SMCI) are taking a breather today. But it's not just because of the stock's recent parabolic move higher. Super Micro shares have doubled in the past month but were lower by 11.3% as of 12:10 p.m. ET today.
That's because the company announced the pricing for a $1.5 billion capital raise today.
The plan to raise capital was announced earlier this week. Still, investors were caught up in a wave of buying any stock related to artificial intelligence (AI) after Nvidia's blowout quarterly earnings report. Super Micro shares also surged on that report and can now price its convertible note offering at an even higher price point. The company seeks to raise $1.5 billion by selling convertible senior notes based on yesterday's closing price of $975 per share.
Source Fool.com
