Large microcomputers, a technology infrastructure company and big winner in artificial intelligence investments on Wall Street, plans to issue two million additional shares. This brings the total number of shares outstanding to a good 58 million, as CNBC reports. This surprising step caused a significant share price drop of ten percent.

Super Micro Computer wants to invest

According to CNBC, the main objective of the share issue is to raise additional capital to expand the business. The money will be used for various purposes, according to the report, such as purchasing inventory, expanding production capacity and increasing investments in research and development.

Super Micro Computer has grown significantly in recent months thanks to interest in artificial intelligence (AI). Recent advances in AI, including large language models like ChatGPT, require greater computing power and data storage. This has led investors to focus on chipmakers like Nvidia and server infrastructure companies like Super Micro Computer as early beneficiaries of the development.

Some experts are cashing in on Super Micro Computer

CNBC notes that despite the dynamic development, some Super Micro Computer insiders have sold their own shares in the company in recent months. CEO Charles Liang sold about 1,000 shares attributed to his wife in January.

Top manager Daniel Fairfax sold a total of 900 shares on three different days in 2024. Top employees likely took advantage of the sharp price rise. The stock tripled in value between mid-January and mid-March 2024.

Get informed, understand, make the right decisionsHere you can get general information about current financial news. Every Friday as a newsletter.

*Fields marked with an * are required