Super Micro Computer entered the S&P 500 index on Monday, after its stock grew more than tenfold over the last 12 months.
The 31-year-old server and computer infrastructure company is one of several beneficiaries of the latest surge of interest in artificial intelligence. Super Micro Computer — once a relative unknown — has become a frequent supplier for companies and governments interested in cashing in on the AI boom. Its servers — equipped with Nvidia $NVDA chips — are expected to double the company’s revenue this year.
The San Jose, California-based company’s stock has increased by almost 985% over the past year to roughly $1,068 per share, giving Super Micro Computer a $60 billion market capitalization.
Super Micro’s first day on the S&P 500 wasn’t a good one, though: The stock closed down 6.3% in Monday, and fell another 3.6% in after-hours trading.
Super Micro’s earlier gains are reminiscent of Nvidia’s own AI-powered stock surge, which made it one of the most valuable companies in the world. The Santa Clara, California-based Nvidia became the first in its industry to reach a $2 trillion market cap last month, riding the AI wave to surpass Amazon $AMZN and Google $GOOGL’s parent company Alphabet by market cap.
Super Micro has benefitted from its strategy of making “building blocks” that can be assembled into servers in a variety of configurations, while rivals have a more limited set of offerings. That flexibility has given Super Micro an advantage in the AI boom, allowing it to cater to firms working on everything from self-driving car technology to the so-called large language models that drive AI chatbots like OpenAI’s ChatGPT.
The growth came after years of challenges for Super Micro.
In 2017, Super Micro’s chief financial officer and one of its co-founders stepped down after an internal audit forced revisions of the company’s previous financial statements. The CFO and Super Micro were later charged with accounting violations by the U.S. Securities and Exchange Commission.
Super Micro has replaced Whirlpool, a home appliances company, on the S&P 500. Deckers Outdoor, the company behind Koolaburra and UGG, also made its S&P debut Monday, replacing Zions Bancorporation.