Super Micro Computer’s stock soared above the clouds after the S&P Dow Jones indices awarded it a coveted spot in the S&P 500.
After the news broke early on Monday, the 31-year-old server and computer infrastructure company hit a record rally, with shares popping more than 25% in trading, adding over $220 per share. Super Micro — which trades as SMCI on the Nasdaq — currently has a market capitalization of roughly $63 billion. The median market cap for S&P 500 companies is $33.7 billion.
The stock gave up some of those gains late in the day and closed up 18.6%.
Since the year began, the San Jose, California-based company has watched its stock practically erupt, fueled by the industrywide AI boom. In just over two months — or 64 days, to be precise — Super Micro’s stock has gained $842 per share, or a 295% increase.
Over the past 12 months, Super Micro stock has skyrocketed 1,047%.
Super Micro’s gains are reminiscent of its frequent collaborator, Nvidia, which recently benefitted from its own AI-powered stock surge.
On Friday, the chipmaker again surpassed a $2 trillion market cap, pushing past Saudi Arabia’s Aramco to be the world’s third most valuable company. Santa Clara, California-based Nvidia became the first in its industry to reach that $2 trillion evaluation last month, riding the AI wave to surpass Amazon and Google’s parent company, Alphabet, by market cap.
Super Micro will replace Whirlpool, a home appliances company, on March 18. Deckers Outdoor, the company behind Koolaburra and UGG, will also make its S&P 500 debut on March 18, replacing Zions Bancorporation.
Whirlpool stock was relatively stagnant in Monday trading, while Zions Bancorporation stock climbed 2%. Deckers Outdoor shares grew 3% to $931 per share, hitting a market cap just below $24 billion.