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Super micro computer joins the S&P 500 following a historic stock rally that pushed the company’s market capitalization past $50 billion.
The stock, which has gained more than 20 times in the past two years and more than 200% since the start of 2024 alone, rose another 8% in extended trading on Friday.
Super Micro is being replaced whirlpoolaccording to a press release. Outdoor decks also joins the S&P 500, replacing Zions Bancorporation.
Stocks added to the benchmark index often increase in value because funds that track the S&P 500 will add it to their portfolios. The average market capitalization for companies in the S&P 500 is $33.7 billion.
Super Micro is one of the main beneficiaries of the artificial intelligence boom sweeping the tech industry. The company manufactures servers and other computer infrastructure and is one of the main suppliers for building Nvidia-based “clusters” of servers for training and deploying AI models.
In the quarter that ended in December, Super Micro’s revenue doubled to $3.66 billion. Analysts expect sales in the current quarter to more than triple.
“We see Nvidia’s results as a positive data point for SMCI, which is one of the leading partners that designs and manufactures servers that wrap GPUs and customize racks according to a customer’s specific needs,” Bank of America analyst Ruplu Bhattacharya wrote in note last month. He has a buy rating on the stock.
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