Super Micro Computer director sells $SMCI stock: should you too?

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on Mar 5, 2024
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  • Sherman Tuan sold $4.37 million worth of Supermicro stock.
  • Goldman Sachs analyst sees downside in $SMCI to $941.
  • Super Micro Computer stock has gained close to 300% YTD.

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Super Micro Computer Inc is in the red today after an insider sold 5,000 shares of the artificial intelligence server company.

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How many shares of $SMCI did he sell?

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Sherman Tuan – an independent director of Supermicro unloaded about $4.37 million worth of $SMCI on Monday. He still, however, owns over 22,000 shares of the California-based company.

The insider trimmed his stake in Super Micro Computer following a close to 300% year-to-date rally in its shares.

Earlier this week, a Goldman Sachs analyst also recommended clients to take profit in $SMCI as the run is most likely done in the Nasdaq-listed firm.

Michael Ng recently assumed coverage of Super Micro Computer stock with a “neutral” rating. His $941 price target suggests a 9.0% downside from here.

Why is Ng dovish on Super Micro Computer stock?

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The Goldman Sachs analyst recommends pulling out of Supermicro shares as they are currently trading in line with Nvidia Corp on a price-to-earnings basis.

Michael Ng expects the information technology giant to grow revenue by 51% in 2025 versus a compound annualised growth rate of 61% between 2021 and 2024. His research note also reads:

$SMCI is well-positioned to serve demand from AI CSP’s over the next few years, but serving enterprise AI infrastructure demand in the years after will be more competitive.

Famed investor Jim Cramer also favours the likes of Dell, Arm Holdings, AMD, and Cadence Design Systems over Super Micro Computer Inc that recently joined the S&P 500.

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