©Reuters. Super Microcomputer (SMCI) Stock Falls After Addition to S&P 500
Super Micro Computer (NASDAQ:) stock fell more than 9% on Monday when the server maker was added to the S&P 500.
In early March, S&P Dow Jones Indices announced changes to its index, announcing that Super Micro Computers and Deckers Outdoor Corp. would replace Whirlpool and Zion Bancorp., respectively, in the S&P 500.
SMCI’s share price has risen significantly over the past 12 months, up a hefty 897% as the company continues to benefit from the surge in demand for artificial intelligence. The company has become a go-to supplier for companies and governments looking to join the AI boom.
SMCI stock’s inclusion in the S&P 500 means it becomes the index’s new top performer for the year. However, SMCI stock is currently trading at $968 per share after falling 9.55% on Monday. If SMCI stock closes lower as expected, it will be the third consecutive day of declines, following last week’s rise to an intraday high of $1,229.
“Supermicro is honored to be included in this prestigious group,” said Charles Liang, President and CEO of Supermicro. Mr. Liang has led the company throughout its history.
“This achievement recognizes our entire global team for delivering green computing and our building block architecture to be a leader in the emerging field of AI as organizations large and small move towards greater productivity. It shows dedication and hard work,” he added.
Like Nvidia, SMCI is also a pioneer in the AI boom. That server is the hardware used to run AI chips from Nvidia and other manufacturers. In a recent interview with the Wall Street Journal, Liang said that the SMCI location in San Jose, Calif., is just a 15-minute drive from NVIDIA’s headquarters in Santa Clara, and that “our engineering teams work together from early morning until late at night.” I can work,” he said. ”
