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Shares of Advanced Micro Computer Corp. rose more than 18% on Monday, fueled by the announcement that it will be included in the famous S&P 500 index.
The share price of the company, known for its server and computer solutions, has increased more than twenty times in the last two years. The record-breaking rally was driven by a booming intellectual property market.
Super Micro’s stock price is up 278% so far this year, following gains of 246% in 2023 and 87% in 2022, amid tough times for the print technology sector as a whole. The company’s market value rose from about $4.5 billion at the end of 2022 to about $60 billion at Monday’s close.
According to the latest information, Supermicro will replace Whirlpool in the S&P 500 as of March 18. The change was announced Friday.
It’s notable that Goldman Sachs analysts initiated a neutral rating on Super Micro shares and set their 12-month price target at $941 in an investor report published Monday.
The company’s strong financial results led to an explosion in its growth, with revenue more than doubling to $3.66 billion in the quarter ended December. Analysts expect sales to increase and earnings to increase this quarter. Super Micro’s position as Nvidia’s first supplier of AI servers ensures its position in the rapid development of AI.
As Super Micro continues to climb new heights in the technology industry and beyond, its inclusion in the prestigious S&P 500 Index is a key enabling asset that adds value to its prominence and business leadership.