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Supermicrocomputer is joining the S&P 500 following a historic stock rally that pushed the company’s market capitalization above $50 billion.
The shares, which have risen more than 20-fold over the past two years and more than 200% since the start of 2024, rose another 8% in extended trading on Friday.
Super Micro is replacing Hydromassageaccording to a press release. Outdoor deckers it also joins the S&P 500, replacing it Zion Corporation.
Stocks added to the benchmark index often increase in value because funds that track the S&P 500 index will add them to their portfolios. The median market capitalization of S&P 500 companies is $33.7 billion.
Super Micro has been one of the main beneficiaries of the artificial intelligence boom sweeping the tech sector. The company produces servers and other computing infrastructure and is a leading provider of construction services Nvidia“clusters” of computer-based servers for training and deploying AI models.
In the quarter ended in December, Super Micro’s revenue more than doubled to $3.66 billion. Analysts expect sales in the current quarter to more than triple.
“We view Nvidia’s results as a positive for SMCI, which is a major partner that designs and manufactures servers that wrap GPUs and customize racks to a customer’s specific needs,” the Bank of India analyst wrote America Ruplu Bhattacharya in a note last month. He has a buy rating on the stock.
CLOCK: Super Micro is absolutely a meme stock
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