Super Micro Computer Stock Rises Again. Still a good buy?

On Wednesday, the upward trend that has propelled Super Micro Computer's (NASDAQ: SMCI) stock price continues. Midway through the afternoon, Supermicro shares were up roughly 4% from their morning high of 7%.

Following cybersecurity industry heavyweight CrowdStrike's impressive earnings report, which bolstered the idea that demand for computing power is continuing to expand, those increases occurred.

Those on the inside of Supermicro are cashing in on the stock's incredible 300% year-to-date surge. Some investors might be interested in following suit.

Leveraging the recent surge in SMCI stock The recent upswing in Supermicro stock price is well-deserved. Its AI server products are selling like hotcakes because AI is revolutionizing the way companies function. According to the last financial report, sales increased by more than 100% year over year, and that trend is expected to persist.

The stock price already reflects much of the expected gain, though. Forward price-to-earnings ratio exceeds 50 as well. In order to raise the stock's valuation closer to its historical market levels, growth will need to surpass projections for a while.

That could shed light on the actions taken by the corporation and its leadership to capitalize on the stock's recent surge. Supermicro stated on February 27 that it has raised approximately $1.7 billion through the sale of convertible senior notes. The corporation made a good decision because it found a buyer for the bonds at no interest.

A different corporate filing from last week revealed that a director of the company sold a few shares. More than 1,200 shares have been sold by director Daniel Fairfax in the past year. There were 29 sales of shares by insiders last year, but just 4 purchases.

Traders shouldn't be worried because insiders sell shares for all sorts of reasons, including personal ones. But ordinary investors who own Supermicro shares may consider selling some of them to cash out, since the present share price already accounts for a substantial percentage of expected future growth.