Super Micro Computer To Join Nasdaq 100 Index

Key Takeaways

• SMCI (Super Micro Computer Inc.) to join the Nasdaq-100 Index®
• Replacing WBA (Walgreens Boots Alliance Inc.)
• Super Micro Computer Inc. will be considered for inclusion in multiple Nasdaq technology sector indices.

Super Micro Computer Inc. Added to Nasdaq-100

NDAQ (Nasdaq, Inc.) has announced that SMCI (Super Micro Computer Inc.), a Total IT Solution Provider specializing in AI, Cloud, Storage, and 5G/Edge, will become a component of the NDX (Nasdaq-100 Index®) and the NDXE (Nasdaq-100 Equal Weighted™ Index) on Monday, July 22, 2024.

The AI server maker will replace the pharmacy chain WBA (Walgreens Boots Alliance). Walgreens, whose stock has declined by over 60% in the past 12 months, will also be removed from the NDXX (Nasdaq-100 Ex-Tech Sector Index) and NDXESG (Nasdaq-100 ESG Index).

Significant Growth for Super Micro

While SMCI was added to the S&P 500 in March of this year, its move into the Nasdaq 100 follows its recent exit from the Russell 2000 small-cap index. Starting the year with a market capitalization of just over $15 billion, SMCI‘s value has skyrocketed to approximately $58 billion. This explosive growth positioned it as one of the largest holdings in the Russell 2000, accounting for over 1% of the index’s total market value and contributing nearly 2 percentage points to the index’s return.

Following the inclusion date, traders and investors will surely turn their attention to SMCI‘s next earnings report, due out on August 6th. The company is expected to announce revenues of $5.29b (representing +242% YoY growth) and earnings of $8.10/share (representing +213% YoY growth).