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Super Micro Computer stock falls after S&P 500 addition

Published 03/18/2024, 01:55 PM
Updated 03/18/2024, 01:58 PM
© Reuters.  Super Micro Computer (SMCI) stock falls after S&P 500 addition

The Super Micro Computer (NASDAQ:SMCI) stock price declined more than 9% on Monday, the day the server-maker was added to the S&P 500.

At the start of March, S&P Dow Jones Indices announced changes to the index, saying Super Micro Computer and Deckers Outdoor Corp will replace Whirlpool and Zion Bancorporation in the S&P 500, respectively.

SMCI’s stock has been a significant winner in the last 12 months, rising an enormous 897% as the company continues to benefit from the surge in artificial intelligence demand. The company has become a go-to supplier for businesses and governments eager to participate in the AI boom.

The inclusion of SMCI stock in the S&P 500 means it is the index’s new top one-year performer. However, the SMCI stock price is currently trading at $968 per share after a 9.55% decline on Monday. If, as expected, SMCI shares do close lower, it will be their third down day in a row following an increase that saw them reach an intraday high of $1,229 last week.

“Supermicro is honored to be included in the prestigious S&P 500 Index," said Charles Liang, President and CEO of Supermicro. Liang has led the company for its entire history.

"This achievement shows the dedication and hard work of our entire worldwide team to deliver green computing and our Building Block Architecture to become a leader in the emerging AI space as large and small organizations move toward higher productivity,” he added.

Like Nvidia, SMCI has been a frontrunner in the AI boom. Its servers are the hardware used to run AI chips from Nvidia and other producers. In a recent interview with The Wall Street Journal, Liang said that the SMCI base in San Jose, California, is just a 15-minute drive from Nvidia’s headquarters in Santa Clara, their “engineering teams are able to work together from early morning to midnight.”

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