Super Micro Computer SMCI is going back to the market for $7 billion, and the reason is simple: AI server demand is moving faster than its balance sheet. The company plans to raise the money through a mix of equity and equity-linked financing, including $5 billion in underwritten offerings and another $2 billion through an at-the-market program that could begin no earlier than the third quarter. Super Micro said the capital would help purchase components needed to fulfill customer orders, with part of the proceeds also possibly going toward debt repayment, capital expenditures, and other general corporate purposes.

The headline number behind the raise is hard for investors to ignore. Super Micro said it had about $39 billion in orders, helped by demand for servers fitted with Nvidia NVDA chips and built for artificial intelligence workloads. That demand story remains powerful, but the market reaction was sharp, with shares falling about 9% in extended trading after the announcement. Investors are also weighing recent execution pressure, after the company reported revenue that fell short of estimates and blamed the miss on a short-term delay because customers were not ready for its equipment. Competition from Dell Technologies DELL and Hewlett Packard Enterprise HPE could also keep pressure on Super Micro in the AI server market.

The underwritten financing is expected to include a $1.25 billion share sale and a $3.75 billion offering of depositary shares tied to mandatory convertible preferred stock, with pricing expected Wednesday evening New York time. JPMorgan Chase JPM, Goldman Sachs GS, and Citigroup C are leading the offerings. Super Micro also updated its risk disclosures earlier Tuesday to include the March indictment of co-founder Yih-Shyan Wally Liaw, who US prosecutors charged with illegally diverting billions of dollars in Nvidia-powered servers to China in violation of US export controls. Super Micro was not named in the indictment, but the company said the case has brought negative publicity.