Nvidia supplier Wistron raises $1.47 billion as AI server boom strains its balance sheet

Wistron Corporation, one of the largest assemblers of Nvidia's artificial-intelligence servers, priced a $1.47 billion global share offering on Monday, sending its stock down more than 6 percent in Taipei trading as investors weighed the cost of keeping pace with surging AI demand.

The Taiwan-based manufacturer priced 25 million global depositary receipts at $58.88 apiece, equivalent to 250 million new common shares. The shares were priced at roughly 186.24 New Taiwan dollars each, a 5.5 percent discount to Wistron's closing price of NT$197 the previous session. The new stock represents about 7.3 percent of the company's outstanding shares before the issuance.

Wistron said the proceeds would fund purchases of raw materials denominated in foreign currencies, aligning the financing with the pace of its manufacturing commitments as it expands production of AI server hardware for Nvidia and other customers, according to a Reuters report carried by Yahoo Finance. Global depositary receipts, which trade on European exchanges and convert into the underlying local shares, let a company such as Wistron raise foreign-currency capital from international investors without pursuing a full secondary listing abroad, a structure Taiwanese electronics manufacturers have leaned on more heavily as AI-related capital needs have grown.

The offering follows a board resolution Wistron disclosed at its first-half 2026 earnings release in early August, when directors authorized management to pursue the issuance of up to 250 million new shares in depositary-receipt form, subject to shareholder approval granted at this year's annual meeting.

Wistron traces its roots to 2000, when it emerged as a spinoff of the design-and-manufacturing arm of Acer, the Taiwanese PC maker, becoming a standalone company the following year. It built its early business assembling notebooks, servers and other hardware for Western brands including Dell and Apple, and ranked among the world's largest notebook manufacturers before AI servers became its fastest-growing product line.

The capital raise comes as Wistron races to keep up with orders tied to Nvidia's newest chip platforms. In July, the company opened its first American manufacturing site, a $700 million AI server plant in Fort Worth, Texas, which is producing Nvidia's GB300 Grace Blackwell Ultra systems and is expected to add capacity for the next-generation Vera Rubin platform. Wistron has also approved additional capital investment in facilities in Taiwan to support the expansion, part of a broader pattern among Taiwanese electronics contractors of tapping capital markets to finance the working capital such build-outs require.

Wistron said the funds raised would go toward "raw-material purchases denominated in foreign currencies," tying the financing directly to the pace of its AI hardware manufacturing commitments.

The stock decline reflects a familiar dynamic for AI-adjacent suppliers this year: dilution from new share issuance colliding with investor anxiety over whether capital spending across the sector can keep generating returns fast enough to justify it. Wistron's shares had risen sharply over the past year on the strength of AI server demand before Tuesday's pullback.

The new GDRs are expected to be issued this week. Wistron reports its next quarterly results in the coming months, when investors will look for evidence that the newly raised capital is translating into fulfilled orders rather than simply covering rising input costs.