Stocks
Wistron Raises $1.47 Billion for Nvidia's AI Server Production
Nvidia NVDA secured another boost to its manufacturing network as supplier Wistron raised $1.47 billion on Monday.
The funds will be used by Wistron to purchase foreign-currency raw materials and scale up AI-server production in a newly opened $700 million Texas facility that produces Nvidia's latest AI systems.
The deal sees Wistron issue 25 million depositary receipts representing 250 million common shares at a 5.5% discount, which dilutes existing shareholders by approximately 7.29%.
Nvidia gains from the better-funded supplier, capable of purchasing components and pushing out more servers without touching Nvidia's balance sheet.