The supermicrocomputer's stock price has soared more than 600% over the past year, and one director just signaled confidence by buying up shares.
Fred Chan, who spent more than three years on the storage and server company's board of directors, amassed 2,000 shares of SMCI's Supermicro stock.
Thursday at $568 each, according to a Securities and Exchange Commission filing made public Monday. He spent $1.14 million in open market transactions.
Mr. Chan, who has a background in engineering and real estate, currently owns 42,917 Supermicro shares, worth more than $28 million at Monday's closing price.
Mr. Chan's purchase will be made in the form of a stake in Super Micro, Nvidia Corp.'s NVDA.
It is a partner that has experienced explosive growth recently, with signs of strong business momentum. The company's revenue doubled in its most recent quarter, and analysts expect it to triple this quarter thanks to the artificial intelligence craze.
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“We are finally entering a phase where demand is accelerating as we have acquired many customers,” CEO Charles Liang said at an earnings conference last week. “I'm very confident that this AI boom will continue for many more quarters, if not years,” he said.
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Chan became a buyer after the latest financial results, while fellow director Daniel Fairfax unloaded some of his shares. He sold 300 shares at $540 each on Thursday, for a total transaction value of $162,000.
His current position, 20,087 shares of Supermicro stock, is worth about $13 million based on Monday's closing price.
Supermicro declined to comment on any stock transactions.