Josh Weiner
Super Micro Computer experienced a significant surge, climbing 13.5% in after-market trading on Friday, March 1, following the announcement that the AI server manufacturer is slated to be included in the S&P 500 index. This adjustment will take place before trading begins on Monday, March 18, as part of a routine quarterly rebalancing of one of Wall Street’s most closely monitored stock indices, as revealed by S&P Dow Jones Indices in a recent press statement. Super Micro, alongside Deckers Outdoor Corp, is set to replace Whirlpool Corp and Zion Bancorporation in the index.
The inclusion in the S&P 500 is noteworthy because index funds, which are some of Wall Street’s most favored investment mechanisms, track this index. Consequently, these funds are expected to acquire shares in Super Micro and Deckers to remain congruent with the index’s new structure.
Howard Silverblatt, a Senior Index Analyst at S&P Dow Jones Indices, highlighted that S&P 500 index funds hold assets totaling approximately $7.8 trillion. Super Micro, known for its premium servers that incorporate Nvidia’s advanced AI processors, has seen its stock more than triple over the current year, pushing its market valuation beyond $50 billion. This remarkable growth led to widespread speculation among investors regarding the company’s potential addition to the S&P 500.
Trading activity on Friday reflected this anticipation, with almost $10 billion worth of Super Micro’s shares changing hands. This volume of trade surpassed that of industry giants such as Microsoft and Amazon, underscoring the heightened investor interest in Super Micro.
The company’s stock further appreciated by 4.5% during Friday’s regular trading hours, building on the momentum in after-hours trading. Meanwhile, shares of Deckers experienced a 2.7% increase in extended trading. In contrast, Whirlpool and Zion Bancorporation saw their shares decline by 1.7% and 2%, respectively, following the announcement of their removal from the S&P 500 index.
This reshuffling of companies within the S&P 500 not only reflects the dynamic nature of the stock market but also underscores the growing importance of AI technology and its providers like Super Micro in the contemporary investment landscape. The adjustment in the index is indicative of shifting market trends and investor preferences, spotlighting companies that are at the forefront of technological advancements. As Super Micro prepares to join the ranks of the S&P 500, the move is a testament to the company’s impressive growth trajectory and its pivotal role in powering AI innovations.
