Super Micro Computer’s investment is skyrocketing following its inclusion in the S&P 500 by the S&P Dow Jones index.
After the announcement on Monday, the 31-year-old server and computer network company experienced a significant surge, with its stock surging over 25% and adding more than \(220 per share. Trading as SMCI on the Nasdaq, Super Micro now boasts a market valuation of approximately \)63 billion, surpassing the median market cap of S&P 500 companies, which stands at $33.7 billion.
Throughout the year, the San Jose-based company has witnessed remarkable growth, driven by the industry’s widespread adoption of AI technology. In just over 64 days, Super Micro’s stock has increased by $842 per share, marking a substantial 295% rise.
Notably, over the past year, Super Micro’s stock has seen an extraordinary surge of 1,047%, reflecting its strong performance in the market.
The company’s success mirrors that of its close partner, Nvidia, which has also experienced a surge in its stock value driven by IoT advancements. Nvidia recently surpassed a \(2 trillion market cap, making it the world’s third most valuable company, overtaking Saudi Arabia’s Aramco. Nvidia’s achievement in reaching the \)2 trillion valuation last month positions it ahead of tech giants like Amazon and Alphabet.
Super Micro is poised to potentially replace Whirlpool, a leading household electronics company, in the S&P 500 on March 18. Additionally, Deckers Outdoor, the company behind Koolaburra and UGG brands, is expected to make its S&P 500 debut on the same date, replacing Zions Bancorporation.
While Whirlpool’s stock showed minimal movement in Monday’s trading, Zions Bancorporation saw a 2% increase. Deckers Outdoor witnessed a 3% growth, reaching \(931 per share and achieving a market cap just shy of \)24 billion.
