Super Micro Computer stock surged over 18% on Monday following the announcement of its inclusion in the S&P 500 index.
The server and computer infrastructure company’s shares have experienced an exceptional rise, increasing more than twentyfold over the past two years. This remarkable rally has been propelled by the widespread adoption of artificial intelligence technology across various industries.
Super Micro’s stock has soared by 278% since the beginning of this year, following gains of 246% in 2023 and 87% in 2022, despite it being a challenging year for the broader tech sector. The company’s market capitalization has seen an extraordinary ascent from approximately $4.5 billion at the end of 2022 to around $60 billion as of Monday’s market close.
Effective March 18, Super Micro will replace Whirlpool in the S&P 500 index, as per the announced changes from Friday.
Analysts at Goldman Sachs initiated coverage of Super Micro stock with a neutral rating and set a 12-month target price of $941 in an investor note released on Monday.
Super Micro reported a more than doubling of revenue to $3.66 billion in the quarter ending December, with analysts anticipating a further triple in sales for the current quarter. The company serves as a key vendor for the development of Nvidia’s AI servers, contributing to its robust performance in the market.
