Global leader in AI and computing, Super Micro Computer (SMCI) has had its shares fall by about 10% in after-hours trading on Tuesday after the server maker announced plans to raise $7 billion in new financing to fund its growing AI hardware backlog.

The capital raise involves two phases, with the initial phase being an immediate launch of a $5 billion underwritten public offering in addition to a later $1.25 billion in common stock. A $3.75 billion in depositary shares raise tied to newly issued mandatory convertible preferred stock is expected afterward.

A separate $2 billion at-the-market equity program, managed by major Wall Street banks, is set to begin no earlier than the third quarter of 2026.

Super Micro said it needs the cash to…