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Super micro computer shares jumped more than 25% in Monday morning trading after the company was selected Friday to join the S&P 500.
Shares of the server and computing infrastructure company have risen more than twenty-fold in the past two years and more than 200% year-to-date.
Super Micro’s record-breaking stock rally, led by the industry-wide artificial intelligence boom, has pushed the company’s market capitalization past $50 billion. The average market capitalization for S&P 500 companies is $33.7 billion.
Super Micro will replace whirlpool in the S&P 500 starting at the market open on March 18.
Analysts at Goldman Sachs initiated shares of Super Micro with a neutral rating and a 12-month target price of $941 in a note to investors on Monday.
Super Micro’s revenue doubled to $3.66 billion in the quarter ending in December, and analysts estimate sales will more than triple from the quarter. The company is a major supplier for construction NvidiaAI servers on.
— CNBC’s Michael Blum and Keef Lesswing contributed to this report.
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