Technology
Monday, March 4th, 2024 4:03 pm EDT
Key Points
- Super Micro Computer’s stock surged by 20% in Monday morning trading following its selection to join the S&P 500 index, announced on Friday.
- The company’s shares have experienced a remarkable increase, rising more than twentyfold over the past two years and over 200% since the beginning of the year, driven by the industrywide artificial intelligence boom.
- Super Micro’s market capitalization has exceeded $50 billion due to its record rally in stock price, surpassing the median market cap for S&P 500 companies, and it is set to replace Whirlpool in the S&P 500 on March 18.
Super Micro Computer’s stock surged by 20% in Monday morning trading following the announcement that the company had been selected to join the S&P 500 index. This rise comes amidst a remarkable upward trajectory for the server and computer infrastructure firm, with shares increasing more than twentyfold over the past two years and by over 200% since the beginning of the year. The surge in Super Micro’s stock price, attributed to the broader artificial intelligence boom in the industry, has propelled the company’s market capitalization to over $50 billion, exceeding the median market cap for S&P 500 companies. Scheduled to replace Whirlpool in the S&P 500 on March 18, Super Micro’s inclusion further underscores its growing prominence in the market. Goldman Sachs analysts initiated coverage of Super Micro stock with a neutral rating and set a 12-month target price of $941 in a note to investors on Monday. The company’s impressive financial performance, including a revenue increase of more than double to $3.66 billion in the last quarter of 2023, with analysts projecting further sales growth of over triple for the current quarter, is fueled by its role as a primary vendor for Nvidia’s AI servers, positioning it at the forefront of the AI infrastructure market.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/04/super-micro-pops-15percent-after-sp-500-selection.html
