AI Server Stocks: Capital Raising Exceeds 10 Trillion Won Amid Regulatory Risks

Super Micro Computer, Inc. (SMCI) has announced plans to raise approximately $7 billion (roughly KRW 10 trillion) through a public offering, the issuance of mandatory convertible preferred stock, and an at-the-market (ATM) program of up to $1.25 billion. In its Form 8-K filing with the SEC, the company said it has expanded its disclosure of risk factors related to its related-party arrangements with Taiwanese partners, U.S. export-control and sanctions regulations, and ongoing investigations by U.S. judicial and regulatory authorities. The filing also noted that the board is leading a review of the company’s internal compliance program.

On the same day, Supermicro disclosed routine equity-compensation transactions for its Chief Business Officer, including the conversion of restricted stock units into common shares and the grant of additional units.

Separately, on July 2, Taiwanese prosecutors detained or released on bail several employees of Supermicro’s Taiwan subsidiary in connection with an investigation into the alleged illegal export of AI servers equipped with NVIDIA chips. The probe has since expanded, with authorities conducting raids at multiple business locations and supply-chain partners in Taiwan.

Headquartered in San Jose, California, Supermicro is a provider of server, storage, and AI-infrastructure hardware, and has grown by supplying GPU-based AI servers to data centers and cloud service providers. As investment interest in generative AI continues to surge, U.S.-China export controls and tightened regulations on high-performance semiconductors are becoming key factors affecting Supermicro’s—and the broader server industry’s—operating environment and valuations.