Super Micro Computer’s (SMCI) stock is joining the benchmark S&P 500 index today (March 18) following a blistering rally that has seen its share price increase tenfold in the last year.
The company is replacing home appliance manufacturer Whirlpool (WHR) whose share price has declined 20% over the past 12 months.
Super Micro Computer makes data centres that power artificial intelligence (A.I.) models and applications. The company’s market capitalization has soared from $4.50 billion U.S. at the end of 2022 to $60 billion U.S. today.
So far in 2024, Super Micro Computer’s stock has gained 275%, lifting the share price to $1,068.83 U.S. per share.
Super Micro Computer’s stock really took off in spring 2023 after the company announced a strategic partnership with leading microchip designer Nvidia (NVDA).
The rapid gain has options traders now betting on a pullback in Super Micro Computer’s stock.
Currently, Super Micro Computer is among the top five most shorted U.S. stocks, according to market data. That means traders are betting on the share price declining in the near-term.
