The Stock of Super Micro is Set to Be Sold After a Nearly 1,000% Rally in the Last Year

Super Micro Computer Inc. has experienced a remarkable surge, with its shares skyrocketing by an impressive 950% over the past year up to this Monday. In light of this surge, the server manufacturer intends to leverage this momentum by initiating a stock offering.

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According to a statement released on Tuesday morning, the company intends to make 2 million shares of its common stock available through a public offering. Goldman Sachs Group Inc., acting as the underwriter, is expected to possess a 30-day option to acquire up to an additional 300,000 shares.

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Despite this ambitious move, Super Micro's shares, represented as SMCI, have dipped by 10% in morning trading on Tuesday.

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The company has forged a close partnership with Nvidia Corp. and has recently been demonstrating remarkable sales growth independently, positioning itself as one of the primary financial beneficiaries amidst the ongoing surge in artificial intelligence. Notably, Super Micro attained a valuation close to $56 billion on Monday, marking its induction into the S&P 500 index.

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Forecasts suggest that Super Micro is on track to triple its revenue from the March quarter compared to the previous year. Wall Street analysts have expressed enthusiasm for the company's liquid-cooling technology, particularly in light of the significant power demands associated with AI workloads. Additionally, the company's modular architecture has garnered praise for its adaptability, simplifying the integration process for customers.

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However, Super Micro is confronted with intensifying competition in the market. While the company received recognition in Nvidia's recent press materials, rival Dell Technologies Inc. arguably garnered more attention during Nvidia CEO Jensen Huang's keynote address at GTC, where he acknowledged Dell CEO Michael Dell, garnering a spotlight moment during his speech.

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The announcement of the proposed stock offering on Tuesday follows Super Micro's earlier indication in late February of a $1.5 billion convertible-debt deal.

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