SMCI Stock Drops 6% Despite S&P 500 Addition As Investors Take Profits on 2022 Gains
• Super Micro Computer (SMCI) stock fell 6.4% today despite being added to the S&P 500 index, which often boosts demand.
• SMCI shares had surged 11% since the S&P announcement, so some investors likely took profits after the addition became official.
• Even after today’s drop, SMCI is up 252% in 2022 due to booming demand for its AI and cloud servers.
• At current multiples, SMCI may still be undervalued based on its strong growth prospects.
• While SMCI could see volatility in the near-term, its long-term outlook remains positive as AI adoption increases.