Shares of Super Micro Computer Inc. rose. Up more than 600% over the past year, but one board member just sent a signal of confidence by purchasing shares.
Fred Chan, who spent just over three years on the storage and server company's board, received 2,000 shares of Super Micro stock at SMCI,
on Thursday at $568 apiece, according to a filing with the Securities and Exchange Commission published Monday. He spent $1.14 million on the open market deal.
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 as shares in Super Micro, a subsidiary of Nvidia Corp. NVDA,
Partner, recently imploded after showing signs of strong momentum in the business. The company saw its sales double in the last quarter, and analysts expect that they will triple in the current quarter thanks to the artificial intelligence craze.
See more: Super Micro's massive earnings forecast is sending shares higher again
“Finally, we are now entering an accelerated demand phase with multiple customer wins,” CEO Charles Liang said on the company's earnings call last week. He said he is “very confident that this AI boom will continue for many more quarters, if not many years.”
opinion: Supermicro is headed 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. He sold 300 shares at $540 each on Thursday, a deal worth $162,000.
His current position of 20,087 shares of Super Micro stock is worth about $13 million based on Monday's closing prices.
Super Micro declined to comment on any of the stock deals.
