Supermicro (SMCI), a prominent player in the GPU-as-a-Service sphere and a leading retailer of liquid-cooled AI racks, is experiencing a veritable onslaught of insider selling at the moment, with the company's CFO becoming the latest officer to dump a significant portion of his holdings.
To wit, Supermicro's CFO David Weigand has now liquidated 67,000 shares, equivalent to 43 percent of his erstwhile share holdings, at an average price of $44.02 per share. After this significant liquidation, Weigand now owns 88,599 shares.
Of course, an elevated level of insider selling is often indicative of management's internal calculus that a company's share price might be elevated.
Meanwhile, Supermicro has now inked a "multi-year partnership agreement" with DataVolt, a leading Saudi data center company.
While the granular details of this agreement have not been made public, the deal is worth as much as $20 billion, and will see Supermicro supply high-density GPU platforms and rack-scale liquid cooling systems to DataVolt over a number of years.
According to Goldman Sachs, the deal could feasibly entail $5 billion in annual revenue and an annual EBIT of around $200 million for Supermicro, based on an assumed contract period of 5 years and a built-in margin of around 5 percent.
Also, Supermicro has now announced the DLC-2, its next-generation liquid-cooling technology that aims to deliver up to 40 percent savings in water and energy consumption for a given data center. The technology claims to reduce a data center's Total Cost of Ownership (TCO) by up to 20 percent.
Supermicro is able to achieve these savings by increasing the cold plate coverage of server components, allowing for a reduced number of fans operating at lower speeds.
Additionally, Supermicro's DLC-2 liquid-cooling technology is reportedly able to capture 98 percent of the heat emitted by a given server rack, which allows for higher inlet liquid temperature (up to 45 degrees Celsius).
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