Super Micro and Deckers Outdoor join the S&P 500 after rebalancing

(Bloomberg) — Super Micro Computer Inc. was added. and Deckers Outdoor Corp. to the S&P 500 in the most recent quarterly weighting change.

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The companies will replace Whirlpool Corp and Zions Bancorp NA before the start of trading on March 18, S&P Dow Jones said in a news release late Friday. Super Micro shares rose as much as 14% in aftermarket trading while Deckers Outdoor shares rose more than 2%.

California-based Super Micro has seen its shares rise nearly 220% this year alone, as euphoria over revolutionary technologies drives demand for its servers — the chip infrastructure that in turn runs AI-powered applications. The lead-up to this year follows gains of more than 240% over the course of 2023.

Interest in the company increased after the initial quarterly results issued last month exceeded expectations, and the company subsequently raised its revenue expectations.

Super Micro CEO Charles Liang told Bloomberg last week that “market demand is very strong” as he eyes sales of up to $25 billion.

Meanwhile, shares of Deckers Outdoor — maker of Hoka running shoes and UGG boots — are up 35% this year. In its latest earnings report, the company raised its full-year profit and sales expectations.

To qualify for the S&P 500, companies must be highly liquid U.S. companies with a market capitalization of at least $15.8 billion, and meet profitability, liquidity and stock trading standards.

Index inclusion is becoming more important for companies in a world increasingly dominated by passive investment funds. Furthermore, earning a spot in the coveted S&P 500 index enhances a company's investor profile and adds to trading liquidity — factors that can push a company's stock price higher.

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In the previous round of rebalancing, Uber Technologies Inc. and Jabil Inc. and Builders FirstSource Inc. Sealed Air Corp. store. and Alaska Air Group Inc. and SolarEdge Technologies Inc. In the S&P 500 index.

Read more: Uber, Jabil, and Builders FirstSource set to join the S&P 500

–With assistance from Emily Graffeo, Ryan Vlastelica, and Jeran Wittenstein.

(Updates stocks in extended trading)

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