(Portal) – Shares of Super Micro Computer rose 13.5% in extended trading on Friday after it said the seller of AI-optimized servers will be added to the S&P 500.
Super Micro and Deckers Outdoor Corp will be added to the S&P 500 before trading opens on Monday, March 18, coinciding with a quarterly rebalancing of Wall Street's most followed stock benchmark, S&P Dow Jones Indices said in a news release.
These two companies will replace Whirlpool Corp and Zion Bancorporation, S&P Dow Jones Indices said.
Index funds that track the S&P 500 are among the most popular investment vehicles on Wall Street, and these funds must buy shares of Super Micro and Deckers to keep pace with the composition of the benchmark.
According to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, such S&P 500 index funds have about $7.8 trillion in assets.
Super Micro sells high-end servers made with Nvidia's top-of-the-line AI processors, and its inventory has more than tripled this year.
With Super Micro's market value reaching over $50 billion, investors had speculated that the company would be included in the S&P 500.
On Friday, investors swapped nearly $10 billion worth of Super Micro shares, outpacing trading in Wall Street heavyweights like Microsoft and Amazon.
Its jump in after-hours trading adds to a 4.5% gain during Friday's trading session.
Deckers shares rose 2.7% in extended trading, while Whirlpool fell 1.7% and Zion Bancorporation fell 2%.
(Reporting by Noel Randewich; Editing by Diane Craft)