Shares of Super Micro Computer (SMCI -1.83%) rose 14.2% in November, according to data from S&P Global Market Intelligence.

The server maker, which has become a darling of the artificial intelligence (AI) revolution, reported earnings on Nov. 1 that handily beat expectations, while also raising full-year guidance.

In addition, Super Micro got a lift when long-term interest rates declined off their October highs following two tamer-than-expected inflation reports. That boosted just about all stocks, but especially technology and growth stocks.

However, Super Micro's month would have been even better had the company not announced a share sale on the last day of November. It appears investors got a hint of coming news, as the stock declined significantly on Nov. 30 just before the share sale announcement later that day.

Super Micro keeps up its AI-fueled growth

In its fiscal first quarter ending Sept. 30, Super Micro Computer posted 14.6% revenue growth to $2.12 billion, with non-GAAP (adjusted) earnings per share of $3.43, about flat with the year prior. Both figures beat expectations.

At first, the stock didn't move that much, as these year-over-year growth numbers seem relatively lackluster for a red-hot AI stock. However, investors may have come around to agree with management that the relatively tepid growth was entirely due to supply constraints, specifically for Nvidia GPUs that were supply constrained during the summer.

Strong underlying demand seemed to be validated, however, by the fact that Super Micro guided for $2.7 billion to $2.9 billion in revenue in the current quarter, which would mark a massive 33% quarter-over-quarter gain at the midpoint. Adjusted EPS guidance was also strong at $4.64 at the midpoint, suggesting 35% quarter-over-quarter growth. In addition, Super Micro raised both ends of its full-year revenue guidance range by $500 million, to between $10 billion and $11 billion.

Super Micro makes highly customizable and energy-efficient servers, which are catching on with many customers in the age of AI. In fact, over 50% of the company's revenue came from GPU-based AI server products last quarter.

Super Micro was actually headed to an even better month before it fell about 4% on the last day of November. After market close that day, Super Micro disclosed it would be selling 2 million shares at the market price. That sale would dilute shareholders about 3.7% and raise just over $500 million.

It was curious that Super Micro sold stock to raise cash, as the company has obviously been highly profitable and growing, with $546 million in cash against just $146 million in debt. So, the company didn't appear to need extra cash. In the prospectus, management said it intends to use the proceeds to "support our operations, including working capital needs, manufacturing capacity expansion and increased R&D investments."

What is Super Micro planning?

It will be interesting to see what Super Micro does with the cash it just raised. No doubt, the company has a lot of growth capital needs. It's currently expanding new facilities rapidly in both Malaysia and the U.S. in order to meet surging demand for AI servers. The question is, did management really need to sell stock in order to fund these investments?

Look for these questions to come management's way at its next public appearance at the Barclays Global Tech Conference Thursday morning, Dec. 7.