Super Micro Enters S&P 500 After Stock Price Surge of Over 20-Fold in Two Years
Super Micro Computer Inc. has reached a major milestone as it joins the prestigious S&P 500 index after a remarkable surge in its stock price. The company’s market capitalization has surpassed $50 billion, thanks to an impressive rally that has seen its shares climb more than 20-fold in the past two years and over 200% since the beginning of 2024.
Following this extraordinary performance, the stock rose an additional 8% in after-hours trading on Friday. Super Micro is set to replace Whirlpool in the S&P 500, while Deckers Outdoor will take the place of Zions Bancorporation.
The inclusion of Super Micro in the S&P 500 is expected to further boost its value, as many funds that track the index will now add the company to their portfolios. The tech giant has been riding high on the AI wave in the industry, with its revenue more than doubling to $3.66 billion in the last quarter of 2023. Analysts are predicting sales to more than triple in the current quarter, reflecting Super Micro’s crucial role in building Nvidia-based servers for AI applications.
Bank of America analyst Ruplu Bhattacharya has given the stock a buy rating, noting the strong performance of Nvidia, which is a key partner of Super Micro. The company’s entry into the S&P 500 is seen as a significant achievement and a testament to its exceptional performance in the market. The future looks bright for Super Micro as it continues to ride the wave of technological innovation and solidify its position as a leading player in the industry.
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