Shares of Super Micro Computer (SMCI) took a sharp plunge on Tuesday after the data center specialist revealed its plans for a new stock offering. The San Jose-based company announced that it intends to sell an additional 2 million shares of common stock, thereby increasing its total shares outstanding to over 58.5 million.

In a regulatory filing, Super Micro stated that the main purpose of this offering is to acquire additional capital to support various operational needs. This includes the purchase of inventory, working capital requirements, expansion of manufacturing capacity, and increased investments in research and development (R&D).

The success of Super Micro in the field of artificial intelligence (AI) investing has been extraordinary, with the stock soaring a staggering 252% this year through Monday's close. Furthermore, over the past 12 months, the stock has skyrocketed by a remarkable 824%.

Despite this impressive performance, Super Micro shares experienced a significant decline of 9% during Tuesday's trading session, closing at $910.97. Earlier in the day, the stock had dipped as much as 13.8%.

The catalyst for Super Micro's recent meteoric rise came in the form of an outstanding earnings report for the December quarter, released on January 29. This strong performance propelled Super Micro stock to secure the top rank out of 16 stocks in IBD's computer hardware industry group, as per IBD Stock Checkup. Additionally, it has earned a spot on two IBD stock lists: Big Cap 20 and Tech Leaders.

Investors will now closely monitor Super Micro's progress and the impact of the new stock offering on the company's future growth.