03:32 PM EDT, 03/19/2024 (MT Newswires) -- Super Micro Computer ( SMCI ) said Tuesday it plans to sell 2 million common shares in a public offering, sending the artificial intelligence server maker's stock tumbling.

The company expects to grant a 30-day overallotment option to underwriter Goldman Sachs to acquire up to 300,000 additional shares in the offering, which is subject to market and other conditions, it said.

Super Micro shares were sliding 11% in Tuesday late afternoon trade.

"The principal purposes of this offering are to obtain additional capital to support our operations, including for the purchase of inventory and other working capital purposes, manufacturing capacity expansions and increased research and development investments," the company said in a filing with the US Securities and Exchange Commission.

The shares closed at $1,000.68 Monday. So far this year, the company's shares are up more than 200%. Super Micro joined the S&P 500 index Monday.

In January, Super Micro reported that its fiscal second-quarter adjusted earnings rose to $5.59 a share from $3.26 a year earlier, while revenue jumped 103% to $3.66 billion, with both metrics topping Wall Street estimates.

The company said at the time that it expected third-quarter revenue in a range of $3.7 billion to $4.1 billion and full-year revenue between $14.3 billion and $14.7 billion. The Street is looking for $3.9 billion and $14.59 billion, respectively.

"We expect a strong March quarter as we continue to gain momentum with new and existing customers for our AI and rack-scale total IT solutions," Chief Financial Officer David Weigand said on an earnings conference call in January, according to a Capital IQ transcript.

"Next-generation AI and CPU platforms continue to drive strong levels of design wins," Weigand said.

Price: 893.66, Change: -107.02, Percent Change: -10.69