Posted 3/18/2024, 7:04:29 PM
Supermicro Stock Jumps on S&P 500 Addition But Drops 10% as Traders Sell the News
- Super Micro Computer (SMCI) stock jumped early as it was added to the S&P 500 index, but gave up gains and fell 10% by afternoon
- The sell-off seemed to be a "buy the rumor, sell the news" event after recent run-up ahead of S&P 500 addition
- Admission to S&P 500 is long-term positive as it brings mandatory buying from index funds, but stock likely to remain volatile
- Supermicro well-positioned to benefit from AI boom due to strength in key hardware, but traders driving near-term volatility
- Article notes investors may want to wait for volatility to settle before making a long-term bet on Supermicro
