Super Micro to be added to S&P 500; Is there more upside room?
Investing.com — Super Micro Computer (NASDAQ:SMCI) is up more than 12% in premarket trading Monday, propelled by an announcement on Friday that it will be added to the benchmark S&P 500 index. The SMCI stock is the best-performing large-cap company this year, surging nearly 220% since January 1.
On Friday, the S&P Dow Jones Indices announced its quarterly rebalancing moves, adding SMCI and Deckers Outdoor (NYSE:DECK) to the index, which will replace Whirlpool (NYSE:WHR) and Zions Bancorporation (NASDAQ:ZION). The changes are set to take effect prior to the market open on Monday, March 18.
The change, which aims to ensure that the index is more representative of its market cap range, comes on the back of a robust performance of the SMCI stock in 2024.
The artificial intelligence (AI) server maker saw its share price more than triple over the past two months, lifting its market valuation to over $50 billion amid an unprecedented boom in the AI market.
The demand for Super Micro’s offerings has been documented in the company’s latest quarterly report, which showed that its net sales more than doubled year-over-year. On a quarterly basis, sales surged 73%.
Furthermore, SMCI also hiked its revenue outlook for the fiscal 2024, lifting it to a range of $14.3 billion to $14.7 billion from the previously projected range of $10 billion to $11 billion.
Similar to Nvidia (NASDAQ:NVDA), Super Micro’s role is important because it acts as a fuel supplier for the engines driving the AI era.
Specifically, SMCI specializes in providing servers and storage systems for data centers and major corporations. Unlike Nvidia and SK Hynix, which manufacture specific components like GPUs and RAM, Supermicro integrates these components into complete
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