Super Micro Computer Inc. Joins S&P 500

1 min read

On Friday, March 1st, the S&P 500 Index announced its quarterly rebalancing moves. Names being added include:

SMCI (Super Micro Computer, Inc.)
DECK (Deckers Outdoor Corporation)

Names being removed include:

WHR (Whirlpool, Inc.)
ZION (Zions Bancorporation)

This decision highlights the growing dominance of AI stocks in Wall Street’s benchmark index.

Super Micro’s S&P 500 Inclusion

This news comes after SMCI’s incredible start to 2024, in which it has surged over 220% since the year began, making it the best-performing large-cap company so far this year. Previously a member of the S&P Mid Cap 400 index, SMCI’s move to the S&P 500 is set to take place on March 18th, 2024.

Why Do Indexes Rebalance?

Index rebalancing is the periodic adjustment of an index’s asset weights to ensure it accurately reflects its purpose. In the case of the S&P 500, its purpose is to track the 500 largest companies in America. The minimum requirements to be considered for S&P 500 inclusion are:

Minimum Market Capitalization of $8.2 billion.
Structured as a Corporation Based in the U.S. with Common Stock in Capitalization.
Listed on an Eligible U.S. Exchange (e.g. NYSE, NADSAQ)

Super Micro ended Friday with a market capitalization of $50.65, while Whirlpool’s market cap was $5.84 billion and Zions’ was $5.74 billion.

What Does SMCI Do?

Super Micro Computer, Inc. develops and manufactures high-performance server and storage solutions worldwide, including modular blade servers, workstations, networking devices, and security software. Their offerings encompass application-optimized server solutions, rackmount and blade servers, storage, and subsystems, alongside server management software.

The company also provides integration, configuration, and maintenance services for enterprise data centers, cloud computing, AI, and 5G markets.