Super Micro Computer Inc. shares are up more than 600% over the past year, but one board member just sent a signal of confidence by buying shares.
Fred Chan, who spent just over three years on the storage and server company’s board of directors, picked up 2,000 Super Micro SMCI shares,
Thursday at $568 apiece, according to a Securities and Exchange Commission filing made public Monday. He spent $1.14 million on the transaction on the open market.
Chan, who has an engineering and real estate background, now owns 42,917 shares of Super Micro, worth more than $28 million based on Monday’s closing levels.
Chan’s purchase comes in the form of shares of Super Micro, which is an Nvidia Corp. NVDA,
partners, have exploded recently following signs of strong business momentum. The company saw sales double in the last quarter, and analysts expect them to triple in the current quarter thanks to the AI frenzy.
See more: Super Micro’s monster earnings forecast sends shares soaring once again
“Ultimately, we are entering a phase of accelerating demand as we acquire many more customers,” Chief Executive Officer Charles Liang said last week on the company’s earnings call. He said he is “very confident that this AI boom will continue for many more quarters, if not many years.”
Opinion: Supermicro is heading for an Nvidia-like second half, but is it sustainable?
While Chan was a buyer after the latest results, fellow board member Daniel Fairfax unloaded some shares. On Thursday he sold 300 shares at $540 each, in a transaction worth $162,000.
His current position of 20,087 Super Micro shares is worth about $13 million based on Monday’s closing prices.
Super Micro declined to comment on either stock transaction.