Super Micro Computer is entering the S&P 500 amidst a remarkable surge in its stock value, propelling the company’s market capitalization beyond $50 billion.
The shares, which have soared over 20 times in the past two years and surged by over 200% since the beginning of 2024 alone, saw another 8% increase in after-hours trading on Friday. Super Micro will replace Whirlpool, as stated in a press release. Additionally, Deckers Outdoor will join the S&P 500, taking the place of Zions Bancorporation.
Companies added to the prestigious benchmark index often witness an uptick in their market worth because funds that mirror the S&P 500 include them in their portfolios. The median market capitalization for firms in the S&P 500 stands at $33.7 billion.
Super Micro has emerged as a major beneficiary of the ongoing artificial intelligence boom in the technology sector. Specializing in servers and other computer infrastructure, the company is a key supplier for constructing Nvidia-based server “clusters” used for training and deploying AI models.
In the quarter ending December, Super Micro’s revenue more than doubled, reaching $3.66 billion. Analysts anticipate sales in the current quarter to triple or more.
Bank of America analyst Ruplu Bhattacharya expressed optimism about Super Micro’s prospects in a note last month, citing Nvidia’s results as a positive indicator. Super Micro is among the leading partners in designing and manufacturing servers tailored for GPUs, as well as customizing racks to meet specific customer requirements. Bhattacharya maintains a buy rating on the stock.
