Shares of Super Micro Computer (NASDAQ:SMCI) soared by 14% on Monday following the announcement that the artificial intelligence server manufacturer would be included in the S&P 500 index (.SPX), underscoring the increasing prominence of AI stocks within Wall Street’s premier benchmark index.
Based in San Jose, California, Super Micro has emerged as one of the primary beneficiaries of the AI fervor sweeping through Wall Street. The company’s stock has witnessed a staggering 1,000% surge since the conclusion of 2022, including a remarkable three-fold increase in 2024 alone, propelling its market valuation to $50.6 billion.
In the quarterly rebalancing of the widely tracked stock index, Super Micro, along with Deckers Outdoor Corp (NYSE:DECK), is slated to join the S&P 500 on Monday, March 18, displacing Whirlpool Corp (NYSE:WHR) and Zion Bancorp (NASDAQ:ZION). Deckers Outdoor shares experienced a 5.4% uptick, whereas Zion Bancorp saw a 2.2% decline.
The inclusion of Super Micro and Deckers Outdoor in the S&P 500 is anticipated to result in adjustments within popular index funds tracking the S&P 500, boasting assets totaling approximately $7.8 trillion, as stated by Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. Silverblatt estimated that approximately $30.1 billion in rebalancing trades would occur before March 18.
In the wake of Nvidia’s (NASDAQ:NVDA) remarkable stock rally, which propelled it to become the third most valuable U.S. company, fund managers are actively seeking out other companies capitalizing on the AI boom.
Super Micro garnered attention in late January with its exceptional quarterly results, surpassing Wall Street estimates and significantly raising its full-year revenue forecast. The stock, currently trading at $1,034.76, is steadily approaching its all-time high of $1,077.87 recorded on Feb. 16.
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Author Faith Yakubu 
