Super Micro Computer co-founder and senior vice president, Sara Chiu-Chu Liu Liang, recently sold off all the stock she personally held in the company, just days after Super Micro’s stock surged. The stock price rally followed the company’s long-awaited issuance of delinquent financial filings, bringing it back into compliance with Nasdaq listing standards.
Super Micro Executives Cashing Out
Sara Liang, who is also the wife of Super Micro CEO and co-founder Charles Liang, offloaded 46,293 shares valued at $2.3 million, bringing her personal stake in the company to zero. Similarly, George Kao, the company’s senior vice president of operations, sold 71,720 shares worth $3.6 million this week.
Despite selling off their existing stock, both Kao and Liang received new restricted stock units (RSUs)—a common form of equity compensation—that will vest over the next four years. Additionally, Charles Liang was granted 1 million stock options this week as part of a previously announced incentive program based on revenue milestones. This award is part of a 5 million-share package issued in November 2023, with shares granted upon achieving specific revenue and stock price goals.
While Sara Liang no longer holds shares personally, she indirectly owns more than 67 million shares through her husband, Charles Liang.
Super Micro’s Financial Turmoil and Stock Rally
Super Micro, a Fortune 500 tech company closely tied to Nvidia, has experienced a rollercoaster year. The company integrates Nvidia GPUs into its servers, fueling massive investor interest. The stock skyrocketed 3,000% before running into trouble in 2024.
The company faced scrutiny when Hindenburg Research published a short-seller report alleging accounting irregularities. Shortly after, its auditor Ernst & Young (EY) resigned, citing concerns about management integrity. Super Micro conducted an internal review and found no evidence of accounting issues before appointing BDO USA as its new auditor.
This week, Super Micro finally filed its delinquent financial reports, preventing Nasdaq delisting. The company blamed EY’s resignation for the delays, stating in its investor report:
“Due to EY’s stated concerns and subsequent resignation, we were unable to timely file our Annual Report and Quarterly Reports on Form 10-Q for the quarterly periods ended September 30, 2024, and December 31, 2024.”
What’s Next for Super Micro?
CEO Charles Liang emphasized that issuing the financial reports was a crucial step, allowing the company to shift its focus to achieving a $40 billion revenue target for 2025. However, Super Micro still faces investigations by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), as well as multiple lawsuits related to the delayed filings.
“Today’s filings represent an important milestone,” said Liang. “With our financial reporting now current, we can now fully focus on executing our proven winning growth strategy through technology, product and solution innovations, time-to-market advantage, global footprint, and green computing.”
Super Micro has yet to comment further on the insider stock sales or ongoing legal challenges.
Final Thoughts
With Super Micro’s stock rebounding and executive stock sales making headlines, investors will be watching closely. As the company navigates regulatory scrutiny and ambitious growth targets, its ties to Nvidia and the AI market will continue to play a pivotal role in its future trajectory.
For the latest updates on Super Micro stock movements, insider trading, and financial reports, stay tuned.
