Super Micro slumps after announcing $2 billion debt raise

Super Micro Computer is down 4% in premarket trading after the AI server company announced its intention to raise up to $2.3 billion in convertible senior notes.

Management said other transactions made in connection with the offering could produce downward pressure on the shares if buyers hedge their new exposure to Super Micro stock, and plan to take steps to mitigate that and any potential share dilution.

While the debt offering in the headlines is a fundamental catalyst, Super Micro is just one of many high-beta, retail-oriented stocks starting the week on the back foot, a group that includes the likes of Rocket Lab, D-Wave Quantum, SoundHound AI, and crypto-geared stocks.

Shares of Super Micro were up nearly 50% year to date heading into this week, as its ability to meet filing deadlines to stay listed on the Nasdaq, its multibillion-dollar deal with a Saudi Arabian firm, and the renewed vigor of the AI trade have offset near-term challenges that prompted the company to issue disappointing financials twice in an eight-day span.