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Super Micro Computer will join the S&P 500 after the stock staged a historic rally that pushed the company's market capitalization past $50 billion.
The shares, which have risen more than 20-fold in the past two years and more than 200% since the start of 2024 alone, rose another 8% in extended trading on Friday.
According to a press release, Super Micro replaces Whirlpool. Deckers Outdoor also joins the S&P 500, replacing Zions Bancorporation.
The value of stocks included in the benchmark index often increases because funds that track the S&P 500 include them in their portfolios. The median market capitalization of companies in the S&P 500 is $33.7 billion.
Super Micro has been one of the main beneficiaries of the artificial intelligence boom in the technology industry. The company makes servers and other computing infrastructure and is one of the main providers for building Nvidia-based “server clusters” 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 to more than triple in the current quarter.
“We see Nvidia's results as a positive data point for SMCI, a leading partner that designs and builds servers that wrap around GPUs and customize racks to a customer's specific needs,” wrote Ruplu Bhattacharya, an analyst at the bank of America, in a note last month. He has a buy recommendation for the stock.
REGARD: Super Micro is absolutely a meme stock
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