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David Paul Morris | Bloomberg | Getty Images
The super micro computer joined the S&P 500 following a historic stock rally that pushed the company’s market capitalization above $50 billion.
The stock, which has risen more than 20 times in the past two years and more than 200% so far in 2024, rose another 8% in after-hours trading on Friday.
According to a press release, Super Micro will replace Whirlpool. Decker’s Outdoor will also join the S&P 500, replacing Zions Bancorp.
Funds that track the S&P 500 often add the S&P 500 to their portfolios, thereby increasing the value of stocks added to the benchmark index. The median market capitalization of S&P 500 companies is $33.7 billion.
Super Micro is one of the main beneficiaries of the artificial intelligence boom sweeping the technology industry. The company manufactures servers and other computer infrastructure, and it is one of the major vendors building “clusters” of Nvidia-based servers for training and deploying AI models.
Supermicro’s sales more than doubled to $3.66 billion in the quarter ended December. Analysts expect sales to more than triple this quarter.
Ruplu Bhattacharya, an analyst at Bank of America, said, “NVIDIA’s results demonstrate that SMCI is one of our leading partners in designing and manufacturing GPU-wrapping servers and customizing racks to meet customers’ specific needs. “We view this as a positive data point for the country.” Last month’s notes. He rates the stock a buy.
clock: Supermicro is totally a meme stock.
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