Super Micro Surges Into S&P 500 on Booming AI Server Demand
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Super Micro Computer (SMCI) is set to join the S&P 500 index after its stock price surged 289% this year due to high demand for its AI servers.
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SMCI has leveraged its partnerships with Nvidia and AMD to quickly manufacture and bring AI servers to market ahead of competitors like Dell and HP.
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SMCI's flexibility to cater to various AI applications with its versatile “building block” servers has made it a leader in the fast-growing AI server market.
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Analysts project SMCI's share in the AI server market to rise from 10% to 17% by 2026 as it expands manufacturing capacity in the US, Taiwan and Malaysia.
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SMCI's market valuation has risen to $60 billion from $5 billion before ChatGPT's launch, with expectations of sustained triple-digit revenue growth.