Super Micro pops more than 18% after S&P 500 selection

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Super Micro Computer stock closed up more than 18% on Monday after the company was selected on to join the S&P 500.

Shares of the server and computer infrastructure company have been up more than twentyfold during the last two years, a record rally driven by the industrywide artificial intelligence boom.

Super Micro shares are now up 278% this year after climbing 246% in 2023 and 87% in 2022, which was the worst year for tech stocks broadly since 2008. The company's market cap has soared from close to $4.5 billion at the end of 2022 to roughly $60 billion at Monday's close.

Super Micro will replace Whirlpool in the S&P 500 starting at market open March 18, according to the announced changes in the index from Friday.

Goldman Sachs analysts initiated Super Micro stock with a neutral rating and a 12-month target price of $941 in an investor note Monday.

Super Micro's revenue more than doubled to $3.66 billion in the quarter ending December, and analysts estimate sales will more than triple this quarter. The company is a primary vendor for building out Nvidia's AI servers.

â CNBC's Michael Bloom and Kif Leswing contributed to this report.

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