Why Super Micro Computer Stock Got Crushed Today
A surge in new orders has Supermicro raising money to purchase components to satisfy those orders.
Overview
Demand for cloud infrastructure for artificial intelligence (AI) has been soaring. As a supplier of high-performance, high-efficiency server and storage solutions for data centers, Super Micro Computer (NASDAQ: SMCI) is booming.
But the stock is another story, as Supermicro announced it plans to raise $7 billion to fund equipment purchases to satisfy its backlog. Shares plunged on that news and were at the morning low down 16.8% as of 11:00 a.m. ET.
Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.