Super Micro Shares Rise 18% on S&P 500 Inclusion News

Market Cap Surpasses $60 Billion (80 Trillion KRW)
NVIDIA Partner Ensures Stable Chip Supply
"Stock Price May Decline as Index Inclusion Catalyst Fades"

The stock of U.S. server manufacturer Super Micro Computer, a beneficiary of the artificial intelligence (AI) boom, surged on the 4th (local time) following news of its inclusion in the S&P 500 index.

On that day in the New York stock market, Super Micro's stock closed at $1,074.34 (approximately 1.43 million KRW), up 18.65% from the previous close. During the session, it soared nearly 30%, reaching as high as $1,155. Its market capitalization also exceeded $60 billion (approximately 80 trillion KRW).

[Photo by Yonhap News]

Super Micro, a U.S.-based high-performance server manufacturer, has recently experienced rapid growth fueled by the expansion of the cloud market and increased demand for data centers. A key strength is its stable chip supply as an NVIDIA partner, enabling it to build server clusters. Additionally, Super Micro's liquid cooling system, which reduces the massive heat generated during data center operations, is regarded as an essential product for next-generation AI.

Bloomberg reported, "Super Micro is being recognized as the biggest AI beneficiary, surpassing NVIDIA," and added, "NVIDIA, the top-performing stock in the S&P 500, is at risk of losing its throne." According to the report, Super Micro's stock, which was around $40 in March 2022, has surged more than 25 times as of this date, recording an annual return of approximately 1000%. During the same period, NVIDIA rose 257%.

Hans Moseman, an analyst at Rosenblatt Securities, explained, "Super Micro's stock price soared from about $102 to over $1,000 in one year, driven by increased demand for AI-related products and positive growth prospects." He set a target price of $1,300 for Super Micro.

Shana Sisley, CEO of Vanrion Capital Management, said, "Considering Super Micro's technological capabilities, its inclusion in the S&P 500 was inevitable," and forecasted, "Now that there is a name to lead the S&P 500's returns instead of NVIDIA, the index could rise further." However, regarding Super Micro's stock price, she warned investors against overconfidence in further gains, noting, "Stocks tend to be slightly sold off after inclusion is completed."

Meanwhile, alongside Super Micro, U.S. footwear manufacturer Deckers Outdoor was also added to the S&P 500 index, replacing household appliance company Whirlpool and regional bank Zions Bancorporation. Deckers' stock closed at $926.58 on the 4th, up 2.58% from the previous close.

This content was produced with the assistance of AI translation services.