Key Takeaways
- Super Micro Computer Inc. lost about 6% of its value Monday after being added to the S&P 500 index.
- The Silicon Valley maker of data centers has experienced a significant rise in its share value over the last year due to soaring demand tied to the rise of artificial intelligence (AI).
- Despite the day’s dip, the company was still up more than 250% so far this year.
Super Micro Computer Inc. (SMCI)’s stock lost the most value of any S&P 500 company on Monday, its first day included in the index.
On Monday, the server maker became the latest addition to the index of the 500 largest U.S. companies by market capitalization alongside footwear maker Deckers Outdoor Corp. (DECK), which makes the popular shoe brands UGG and HOKA. Supermicro’s stock started the morning trading as much as 2.5% higher but quickly lost momentum, dropping more than 6% by close on Monday.
The Silicon Valley-based tech company has benefited from the interest in generative artificial intelligence (AI) and the demand for data centers. Supermicro stock was up more than 250% year-to-date, despite the day’s price drop.
The company now has a market cap of more than $55 billion. Investors have watched Super Micro’s stock price surge as high as $1,188 last week from about $98 in mid-March 2023.
Earlier this month, analysts were optimistic about the stock, saying there was a runway for more growth at the company amid the AI boom.